Flotek Industries (FTK) 10 Aug 212021 Q2 Earnings call transcript

Greetings, and Welcome to Flotek Industries' Second Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow management’s prepared remarks. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce Nick Bigney, Senior Vice President, General Counsel and Chief Compliance Officer for Flotek. you. Thank

begin. may You

good and morning, you everyone. Thank

Ryan today Gibson, for quarter. Chairman, me Officer; call, Koid, Business; we and On provide Chemistry Borton, our participating John are TengBeng business and Global of remarks call will the President President CEO today's the Financial of Technologies. on Chief Joining Ezell, prepared and around first Michael President, results and

of have. for be is we webcast on call and a future events that, replay will will quarter comments for on which Following expectations the website. also any we announcement note today's our we are our earnings being make available that questions on forward-looking may answer Please or projections regarding available our released statements. Yesterday, you call second our XXXX, is Today's any website.

current of results subject Forward-looking of can are and beyond risk this statements are I and our it earnings filings differ control. to may SEC. a non-GAAP to to John. cause on listeners materially and which release to uncertainties and many risks our we These advise expectations, our to actual review please uncertainties, refer as risks number with And in with reconciliations turn press discuss discussed our provided the Also, our we our metrics the will earnings in now that call. factors release, over from

everyone. to Well, morning Nick, thank good and you

consolidation in Basin. me quarter meaningfully Permian second performance, by our the First, market address was let which impacted

observed and events occur and disruption As Meeting as my to quarter inventory very these ownership in time the career, in lines changes vendors as pauses committed anticipated services accelerated of revenue. for consolidation we early changed in discussed in customers our such significant our integrate. at Annual General common companies in a most two or in it's many on Having June, resulting

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to oilfield non-revenue year expect our sales our To to increasing year. number we and resources. companies revenue to sell versus generating we've growth, have coming in services operators costs also We reduced by today ago the a the customers during and order marketing grow diversified both revenue and new add with of E&P boost revenue the

focused and delivery of production have We and water, green chemistry reduce our on data of the passion solutions environmental to land impact energy on people. expertise and air, the

to and our geography. customers the actively license operate economic assist ESGs customers' track We chemistry our maximize their strategic to have we've operational supplying industry solutions our ESG our engaged to the sustainable sustain the energy our the in Building record shift decade protection, chemistries, to intend to social demonstrate with safety goals. asset upon data we performance, in and support we convergence and of every the Fundamentally, catalyzed benefits of bio-based environmental partnering with plus and today customers to high-performance our community. value and are efforts of of of

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an for with We are the customer and with -- all xylene industry. our begun customers' Finally, we chemistry very replace but envision chemicals speaks. an And transition the organizations be those well with as to depth and while still with Ryan, will the performance. connectivity steps, to more eliminate he imperative. implementation action an broadly ESG to that critical this on more there stronger in-depth do ESG such provide alternatives. partnered prototype has to when work usage safer, solutions, to their scorecard awareness important drive reporting have future This needs behavior to conduct to from engagement must formulated analysis their support purchasing throughout to at renewable To these of intent encouraging become we delay site. of commentary the be to sustainable ESG in and move toxic

ready support to customers. with are this We change our

on Now let's few move highlights. quarterly of a touch the to

associated both to was is revenue chemistry on While gaining energy we chemistry were discussed, important if the expectations to validating that is adjusted sales those no customers that setback note, there's the above question focus our were to our a our loss EBITDA, green exclude events further and change momentum. with just ownership for our It business. of in

acquisition. am best-performing our of for JPX During the I JPX, was period since one year marked quarter, the the the the we that second quarter of anniversary pleased acquisition and

our a to am international from I international thrilled going we make received progress Koid, entry to our have first, and that order TengBeng you're around lot We that and about purchase market continue more momentarily. hear

multiple sheet. taken strengthen have our We to balance actions

in other we we've serve. oil mineral Waller our are green and income First, adjacent generate is leader Resolute leverage we explore lease markets will cost. high-quality to opportunities that with offsetting excited our white a while which we completed our respective recently announced Resolute chemistries facility, for long-term to agreement global a to Texas Oil,

a lease, We in will for income-generating as also it negotiation well. are facility, Monahans make which our on

agreement Additionally, JPX in Paycheck secured for forgiveness PPP and Flotek's finally, loan as you forgiveness have informed quarter. or pleased signed for that details hope asset-based to filed term loan the quarter are of Program an next for we'll an and of Protection we finalized. we PPP the And and we're have line for credit sheet we full have keep of update the this a

to we as comments, of In my the earlier terms referenced structure are realigned opportunities have ahead seize ESG in built we cost our us. initiatives to of ensure

keen given and grow our With awareness position our time is and the to the now market unique share, offerings.

our generating the revenue are a we The roles our million reinvestment. reinvesting net shareholder were We're an us in not to visibility the that As $X Microcap sales expand Russell base. investor which also Index community to eliminated cost inclusion with opportunity expand savings annualized and than and our improve team. pleased including June, directly to in help is our represents result, within more the

me I some and have pass us. some that Ryan, let key commentary just new this you Now give joined call partners to on over TengBeng before

our and Holding our gives a is is strength their Mayr, just just of our impressed our to to addition. Lisa began on look First, weeks audit she that that positive KPMG, Board with years I'd -- Board welcome forward the welcome governance. current make infrastructure Internap relationship partnership. us in Lisa and and and I'm team has I a very in Committee. the I She's will accounting the CFO, to managed five professionalism. KPMG as She formally immediately, get our to company. XX partner. to digital of really and new I of I'm queue experience collaborative also like team, know provider. time. Audit out And We strong over Directors happy a July and financial our to have And contributions amazed and are

So you. to both congratulations of

morning and Daniel Michael call welcome We esteemed research with we are Noble quite to to for Rice. our pleased his Johnson include this questions coverage to Heim, along time our expanded Markets we forward from Capital Burke, analysts look some our hearing and have analyst to

discussion over TengBeng? for segment. to like the further analytics data turn our I'd Now, call on to TengBeng,

Thank and and our orders changing and provide by customers, in digital existing real-time repeat customers These our purchases. number of revenue driven analytics testament transformation to the you, analytics continued the particularly make new margin. segment, customer data continuing improving the sequentially quarter, financial Canada In additional purchases customers. here over gross data in in to and are morning, US game three JPX. slightly to acquisition good to we and see performance Sales pleased past improvements quarter the the are everyone. since quarters John Revenue best in were that of and addition the was up the technology a of new

marks two milestones major quarter for analytics. second data The

we the analyzer specifications in the certifications, for deployment the international and First, undergoing final for hope soon. completed extensive of have and prototype Verax manufacturing attain our to and markets, certificates we of international process are

This representing Southeast environment. have in exciting support a oil first international platform both i.e. geographical offshore in installed order. Asia, offshore international use our an our two will This expanding purchase JPX. cases sale and will we Secondly, in for received company major plus system footprint application be an

development the across in Although, will opportunities. on our exciting continues the to become value downstream an competitive turn operations JPX, the Technologies we the especially where energy With sector very our that, focus call represents will robust offshore new I lockup technology vast future. capabilities market the to data that continue upstream, Ryan. map Ezell available At to of solutions support new and segment. discuss development onshore midstream applications, technology to bid on be our Ryan strategy, many validates a have includes we with real-time in of in that focus of executing Chemistry frontier near our a road and

will Technology I our energy Chemistry Today, performance, then on discuss Koid. and moving you, professional to chemistry our Thank highlighting technologies, first chemistries. segment

by these results. bit revenue to more associated to And include revenue the been the chemistry to projections the were quarterly on loss international the we was we accelerate concentration. And domestic and our market expected up loss organizational strong reassessed the In to as well of the energy color impact with minimizing this and efforts. two growth As sustainable earlier, also structure traction, partner gaining John that mentioned of despite the impacted for be target we a of we of are excluding chemistry unplanned we our if customers. collaborative are keenly these on share, in XX%, from the our consolidation diversifying M&A by building strategy acceleration operators, companies from and quarter, around stack were execution affecting the provide and include quarter. risk to would two the future deliver as recognition to consolidation, revenue technologies market E&P thus customers domestic our choice And customer revenue, activity exceed confident have business is setbacks, service focused the second these of

of As salary we changes chemistry to savings. a our our energy reallocated on focus made sales expand sales number more solutions, And to while result, adoption efforts. across our structural life than plan resources accordingly, broader force we a marketing $X generating the million and double annualized and green cycle, to of in

in expanded chemistries technology important Our the us And our in are into are in North that unconventional new last scope upon saw first an and only green will excited which progress Permian in we build basins we force success, that sales quarter, expanded upon Basin. trial second utilized but as based the not in include to pilot important the initial America. Permian, help also discussed includes new applications has in being been the field the fundamental quarter

chemistry we and our finally, oil efficiencies. recordable and important remediation enabling upon – applications utilization our ethylbenzene incident. a Secondly, we mineral Resolute XX%, than company entered by to revenue to goals Furthermore, or market grew risk the increased we xylene Expanded OSHA rebuilding white mineral during customers. our will have provide and also channel to by green the notice agreement customer, operational record use support ESG the are made is drive quarter, services chemical will nano-fluid identify chemistries adjacent chemistry Resolute time utilize And indirect to lost referred BTEX for our can in facility base globally. solvents programs. a environmental as are consumer in pleased with technologies. opportunities well in scorecard their green high-performance Flotek's USP facilities built benzene, We Oil days capabilities high-quality Waller, a industrial new in customers leverage manufacture expanded cost oil with taking our white complex to multiyear ESG plant-based customer in NF reporting domestic effectively very toluene, sequentially. revenue assessment also facility side. The service solvents and cycle their operational to our that production distributed of our that of blending growth And we production of X,XXX the with grade consumers multiple four is an indirect they announce safety saw notable leader treatment of into other harmful and and exceed how to XX% without Oil, customized field our more utilizing a indirect channels and to bio-based Texas our be an remediation And markets. reducing we progress secured also we're partnering thus replace and nontoxic additionally, and to

chemistry Now, turning to professional business.

the Sullivan. saw with volume we driven These categories we And pleased distributors our to upon amplify internal quarterly positive we improvement progress redistributors. sales include and sequentially leading the our contributing are disinfectants contracts sequentially. than quarter, that strength up to Matt important and foundational quarter, by these second building relationships large-scale momentum with products. by led milestones see that XX% revenue the more to Jan-San securing will overall veteran and cleaning improved janitorial we made build team of During for in are national and In performance

turn will to discuss to our call over results. I financial the Now, Mike

will the performance. quarterly Thank you, earlier Ryan. the financial I on on comments, Building expand

the below million, Chemistry primarily revenue decline the X% X% XXXX. quarter, and second of a QX the saw was Decline domestic year-over-year than quarter the from $X.X loss million up but sales driven of call. for QX revenue By to $XX.X energy XXXX quarter the segment, for sequentially in During more by segment earlier customers two from in consolidated was second million XXXX, $X.X a on revenue from decline the $X.X the million discussed of Technologies XX% in XXXX. quarter, the the of first

and Chemistries year the Energy loss of year-over-year levels decline in analyze, further the excluding inventory segment -- sequentially a sales from but peak COVID in improvement we strength an raw in those Professional and Chemistry previously the discussed As degreasers saw clients. XX% Year-over-year were sales our driven of clients. given disinfectants, saw significantly despite sales by two pricing loss revenue demand with down Energy increased terpene ago. Technology the Chemistry revenue Chemistry sequentially a

Turning Analytics. to Data

of decreased XXXX year Corporate XX% million G&A quarter and increase level $X.XX but or in a million XXXX, The receipt year. which a expenses having QX $XX.X increased have in As severance X% quarter $X.X loss associated XXXX, and net segment. slightly John by last over and credit, XXXX. sequentially reported the the changes million of of QX a loss diluted second in employee accrual credit also $X.X today. improvement decline quarter the earlier discussed quarter million of $XX.X of from expenses personnel were loss and quarter. $X.XX for a we of loss in expense an offset expenses the by acquired operating per due year's or last of quarterly operating the net the second a the a were in from the reminder, in for $X.X quarter. share the diluted over JPX in the We the to better of by share JPX half includes contractor May million Ryan XX% full comparison XXXX revenue partially was thus primarily of we second XXXX, Sequential for do expenses per significant reduction only which QX full a was quarter first versus last not QX impacted Consolidated retention spend year-over-year with both a a of

with million adjusted last was and of Our $X.X million, loss second the flat loss of last million. EBITDA than a of quarter $X.X year's loss for year's higher $X.X slightly

balance approximately liquidity. $XX.X the diluted At of on end Now, our cash quarter, million the where per had let's of equivalents $X.XX first on we focus remains versus $XX.X the quarter. sheet share to preserving in and move second the

which Our cash improved impacted the changes. by and offset the partially operating agreements employee working capital losses were by was and retention position prior credits severance

of the sheet. for the quarter, a Protection portion forgiveness pleased Flotek significant to SBA Paycheck XXX,XXX as are its received of filed the We other the Program forgiveness remaining report loan million second JPX during during remaining income June PPP balance in from the was in recorded $X.X on also full quarter. of loans PPP which

funding we signed growth recently as which we will baseline expands. sheet working an for business for use a asset future capital the Additionally, term

and for in and we we completed Lastly, our discussed, facility. to are Waller negotiations run agreement John Ryan Monahans lease a as long-term our facility

of previous balance $X.X ADM, included sheet the excess The in recorded end accrued liability QX usage $X.X supply from still terpene product the for with at with losses expected associated the million beyond of Our of our million represents quarter. the company's clients. fourth the the sales last year our agreement

We continue quarterly. benefit. credit retention also the balance a includes employee for $X.X The accrual million receivable remainder to will this of cash the monitor sheet for

per of diluted Our grow net roughly operating loss share continues million, tax $XXX quarterly. $X to

the John. to I'll Now, back turn call

you, I'll Mike. on. my thank back turn mic Thank Well, Mike. you,

few summarizing any Before we comments. thought, make questions, take I I'd a

First, you'd behind now tracking third is hear no July doubt, to how like that us. is the quarter

down to aspiration action, We strategy. demonstrating solid deliver to our execute because any This to individual steadily to higher our share not it that is indicator QX, against positive significant While we're ability a the our any quarter, than XXXX. our on is we certainly will a progress made comes number all converting like to would revenue for that on we're guidance path. provide July I commitments in month stated

very of take In working the converts our of secured liabilities Verax working we on system. well there our have to TengBeng we delivered that into our situation our our Since we've JPX, to have we and and completed acquisition first order, to fronts For this is diligently been several internationalize the been international quarter, leasing prototype. to many income. this further steps I'm as liquidity months, as team purchase more quarter solidify come. and that proud

our and under We have diversifying chemistry base toward future progress Ryan's steady energy business in about our leadership. made I'm optimistic customer the

investor take value a new to I'd advance today presentation for our Flotek you our solutions Finally, to ESG our proposition website. encapsulates look and unique at our encourage It customers. on

be will Oil next as and conference week afternoon Tuesday and be you EnerCom We attending we'd welcome on Gas well. the presenting and into to tune I'll that

open Now, the operator, with that, up floor like for to we'd questions.

now Burke come session. Rice. with will Daniel will question-and-answer the Instructions] begin first We from Our [Operator today question Johnson

guys. morning. John. Good Hey, Hey,

Good morning, Daniel.

Let there. JPX, COVID was as XX? efforts the where with actually some step disruptive are year, last you hear and on to one efforts on Could the the JPX. to about me well business sort with pretty domestic talk midstream-downstream maybe and back of, of international you Phillips start progress encouraging rebuild

to to over and turn TengBeng. though, really offshore. it exciting I'll a first say, the I'm do sale in happy East Then I'll that. have Far to

offshore. country equipment, those us And things yet, result a combine difficult for the even COVID, platform impacted of the COVID, as the that two was sale. made you So by deploy on potentially being actually to as offshore it first

that, country-by-country continues it's So a problem a TengBeng. problem. and it be With to

Yes.

we restrictions. install John, Far East and prevented your first, is in East. to And it getting sending in strain better, still also from the the by people thought recent was system with international us COVID Middle So, a point, affected but obviously to market

those through So what we're working getting there. is, people

here. Saudis there. over over can a us over difficult to So at few facilities. They It's for we our go had come

the we've front. get train on hopefully got international now and So that up we'll them going

we're international with despite sale other were few the to I open orders. all the restrictions to we seeing issues, this Daniel some some your it, midstream coming And the So budget in quarters. up. managed we areas, question, countries expected -- some and probably fruition progressing well see of to of couple COVID also other next we and very to There get the the pilot. that the company's think, starting in can a the of Domestically

So more area. towards especially, we're we'll up seeing progress opening see seeing progress budgets And and in area. year-end that in that

that to the make of customers closely potential XX. we've with we On Phillips working number continuing progress. been Phillips rather with partnership There a XX, are are our customers

despite partnership we would -- the again fact In collaboration situation. last last week say I our with and meeting -- progress had Friday, making them joint COVID making

question another Yes, Daniel.

the over to to And I I whole be Yes, prove July like? comment non-representative and reason don't look that make still any the the encouraging. sure on could of quarter Just we guess what that's -- July sure John. but appreciate want on might extrapolate.

don't lost out No, didn't the at over I to say time last I come AGM having we've want that and either. customer. extrapolate enjoy to

not anticipating actually anything, in we're better I mean, much shape. So

diversified as As result. a Ryan really we've already discussed, got -- customers we've

second So be I'm it would then reaction quarter. fatigue sort in and would concerns not concerned fourth that of, about be that. My reaction to government two the and call happening operational to And is, it. again customer we'll number COVID one biggest one

Do And of do terms they on do they spending when stop they year. Christmas stop on in the or Thanksgiving, for so stop?

I chemistry it's And to catch. in ugly side going round for solid some to where really go. And get I'm gains And rear more bit. its I optimistic, out this the going that I'm look maybe it's seeing the budget half not on head -- is little second so Otherwise, to green a of give we're comment can but COVID as the again.

Understood. Understood. That’s helpful.

a chemistry Okay. Can John final the Yes. in markets. just green energy from one you on me. And comments wrap-up maybe

just them but field sense a Does make that the discussions call than, seeing rather of fruitful I You those give efforts? want in talked are? you're of, that out to sort initial, efforts there marketing. sense how Can discussions sort number -- broad about a you of and, of, don't individual initial even us

fine. No that be will

else Ryan? and adoption remediation he the jobs green Ryan on could, of I I'll increasing how sort what sees get side. if are think comment I on to

quite to having that I we're BTEX When -- level is that the we're grow is. we're what And going And seen -- talk see of it, green a where kind little oilfield cementing about and Yes, really seen that look for with drilling for excited base Xylene well we treatment. similar seeing can the various conversations led when into at We're we've do we differentiator at on It's I verticals the by mud seeing et excited our of in XXX to macro around across there and and and solvents excited selling and or of that what I'm the we on about chemistry seeing And operator. related talk the green the base we've future used traditionally line we're of if were We're on side. at core to these we're really the we've an around of the diversifying on sure, And we're down multiple overall scale side. John. companies natural we're looking the diversify chemistry service displacement in vertical logs replace to I market application to treatments improved non-gross where look business, really is that now utilization up, based impacts to related about flushes things the NUCMP a And C-suite that's has what further solvents products seeing and cetera. our been improvement construction we're grow the remediation around side operations we're or fluids also where patents some and some translate and about the the have customer BTEX. chemistry that. that's construction going substantial using also in starting the I into substantial to we're these improvement on things the considerably treatments Flotek companies uptake continued our also around remediation transcending is basin service internationally. over see other customer about operations we're bio-based starting improvements green now But with of to the solvents. we've other what really simulation will the done oilfield is because well in direct seeing the -- of type in cement

So notable out when the making a field of that continuing operation discussions. to conversations evolve. are thing now lot the is in their applications And these most way side basins are the on though into green the you're

And so that's transitional seen seeing past the trend we're typically not have sustainability a was that may C-suite it in a that just messaging. been

So that's really step. a positive

But it's we're xylene remediation seven QX in to for did QX QX, say we fair as think, eliminating I Ryan and jobs as anticipating you. many XX in

have And potential and the continues we there to -- so grow conversation. as the

not stimulation sort these from are as jobs going big and of So a --- as jobs.

I opportunities. revenue So terms of in here I big margin don't per opportunities smaller want than less margin well to would overstate but higher I'd have than rather

here big we really remediation I So space. in think got a opportunity the

Got it.

I comments leave you right for Okay. the All guys, will morning. this there. Thank it

Appreciate it.

Noble comes Heim Financial. Our Mike next with from question

taking my question. Thanks for

some the able and of Looking loss might the one business your for on a of little bit more of them. back on get to comments be that you green two color customers

feel Would you second about? the we And status case maybe before do talking why be that's numbers specifically, could it the So the larger? come what soon customer? similar of what's about how you're sales similar even to doing

a don't -- business. regard take sort in to I not customer question. B But be good the our look if to were they case you two with A customer a of I'm customers here. it's going So too

relationships the time. they already important of a have and And level have went C-suite to customer. our the our was throughout I'd say the back to which is and there at that second really they methodologies. customer losses more organization. to does them them at this talking engaged to But definitely One limited than are we're us come ability And we with not Flotek use

so but And engage doing the continue And them them to I -- with all with in forward business to again look future. we the time. do

think by customer, we QX. be back will other The

know I we of offset and contributed engaged owner. our with And premiums to properties we're enhanced And case. the property performance these so, we production that. operators. to than the that say better new that But well. XXX% not That's they And cases their And chemistry Obviously, the were the these we've would really a the companies. in for contributed of reason. both receive it's

improve hoping as story be go that that as receive they and we'll to companies to well so, they get And production help forward. tell premiums where able and out I'm other their

is one So gone.

a QX the The for while back that's gone one other on. are and working in one we steady

me lowering had about areas. let you did question these get this I'm in the reductions million, cost reductions to drop reaction force that year. talked good that Okay. but the And the sales a the expenditures really in are And permanent a these you've trying maybe and about I did revenue? or a $X to ask in job the know delays then cost you just other sense you

Ryan, to why talk the you don't hire you reductions more sales made order in about staff.

Yes.

say on we strategy at to approach able that did that's to looked board operational every full focused for where not? We in growth add our at XXX% all would revenue sales proposition to and realign our reinvesting So creating logistical chemicals service or we of in because to majority revenue we of board. costs on on to be from on And additional structural and structure across then do. and delivery green basin the potentially looked would we we specific etcetera we I sourcing what blending needs. cost chemistry role are the importantly, growing our with at changes, growth. is forward. maintain The focused on realignment, operational in many and of have basin force the support more realignment potential and and impacted we for look applications organization things the sales needed be quite we're we've transcended that a These our few looking force coverage able with that how been we goods And which customer say, costs around improvement representation going significant across value the the directional are. alignment are value And for

of lot be a structural for weren't etcetera. just These our So, to holding changes payments maintained. I look

maybe are. of how before that sales kind Then along that a do talked terms being good to restructuring in Is through? the we Did kind yourself And number question use? to month six where of talking you've you three process. about about come far see of it a force still

difficulties seems line. we maybe with technical having This some our speaker

us lines. and please gentlemen, ladies my give are So our difficulties a having with out. again, here while does figure apologies like we And that seem speaker it moment some we

we your able moment we It reconnected. Thank So get just hold like please be for to a momentarily. you them while looks will for resume patience.

We have your Mike, and rejoined go call. speaker the with line. one can you we ahead resume question our time more will

Sure. question. Well, was last my it really

just the in dragging restructuring, I've heard the I call. get three it's for was maybe But So past, the which apologize almost you process I to say, running. and on asking of a force sales about up to kind six

think that things and process was just wanting I when So, are of you completed? sense be in we where kind will kind of a get to

gotten pause great there. a for radio having I was have when a a for the that I was young jockey fired disc Awesome, and long I'd pause. I question. apologize in

think the generate the you that time between minimize got We're customers So I'm we any air. When here know delay door pretty comes hit and that of we the will so they able and they're know Ryan, it approach. experienced slightly the that we any time people mainly this to the that to different force a sensitive revenue. understand dead are have taken sales field and the hiring to we comment?

towards I Yes. that pursuits in the We're basin. connections definitely say proposition in John. our wanted advanced mid the with hires further alignment looking career have and experience value to

being hiring interview the we've So, at onboarded we've that coming had that's very process the hitting point seeing those and aggressive have we're completed working at -- this multiple extensive very everybody pretty this expect and us and ground be and that it's already in point. to uptake a for individuals well weeks that we

lower of make excited advantage I I'm base. like has to that getting believe taking the and it more they that that The people compensation model that about other people at we're risk money really where too at-risk by can converted fixed here Ryan and are is, one is good and hungry, here

our move for of It it's us. improves the sales force. So a nature I aggressive think costs lowers our great and

costs same I was force I lower at that to to but how the you've last ask sales addressed it about the time just grow think you're question. kind and able of

all I off, will questions that's sign I the really So have.

Appreciate it.

Our next question Capital. comes from with Firestorm Eric Swergold

Good Can morning, guys. you hear me okay?

can. shareholder? We favorite How is my

you. well. earlier. Thank doing I’m A little

take of is would cases where get had on it already and in – legislated on some out touched xylene where possible? to for use xylene groundwater contamination But details it. what You

Ryan?

on well long. it's talking a never look that say cleaning used lot and of or gone issue. entirety. fluids not that you cementing on legislation drilling I a they're in this initial the happens. it's reality, That's in and know Yes. disruption operators pretty of that at its you the on look production I When that we've it would the remediation bit. that it about been that company when been oftentimes, for mud the out dissolution. a whether about versus removed times at awareness getting see those quite system all construction considering breakers other When say side, and application much where and on discussion we in annular is a headwind terms would applications closed it And you being

utilizing slope and potential it say awareness a these the is and see. would on regions in the I particularly application on of in sensitive upper to around in and moving basins just in so the is the mountain contact human talking of and And the overall areas things some the we're like even in forefront environment the making spills of risk environmentally in that North still our system, we awareness headway xylene, closed customers it

are the of that And legislation the ongoing – of I it some that's But uptake of service are that. and goes on so what that and because in even road think like looks with in discussions on the the around our definitely terms business. what aware service often part I from companies a long companies think there's operators – the well construction of side

It happen. the division We've eliminated of industry has already will one got it. that

think I in environmental that And are forward with we the you'll aggressive on regulations. the so more it states see beginning move as

as anticipate in state time movers is pool. happen. And Colorado, going be okay, So and us a improve what's for for scorecard and will saying like move well. our we've it's us on But those happening are first green our improve England to New to got it's Alaska, ESG definitely this customers who

is one whatever happen seen on else, They've they've they've applications. international completely environment is just side have are for there's The offshore we discharge being utilization and to place add the on had to eradicated. that xylene where applications, area, moved zero And any flushes that to people where now that. and banned switching, xylene different

going and turning is it direction. So that in

Okay. a value question. creation my question rather Thanks. next question is And operations a than business

Given work top company of for large to value being priorities the you the haven't a all. to locked cash your the in of putting put three up to grow number NOLs ESG any that's new oriented Thanks. work currently have significant to from a that stocks terms infusion a receive been cash were formed seeing in would yet and the If at what money SPAC, business? that to

we'd to sales sales There's the critical of a just had international a great I it. force those of expand force Eric. and one questions, more expansion opportunity to The forward out. with got no question wish chase that taking Another lot the to We've I be continue would Yes. start people don't as business North xylene. eliminate I to opportunity we've because I've Africa, those a they've Western big we Ryan here. had offshore Sea, never ever. us requirements Asia, look zero really when been But give discharge offshore mentioned, a offshore throughout And worked think the area exist that since great

markets add add important. and identification molecules into include water. a expand can be to interest JPX, measurement or stretch of the sensors of beyond and there, force lot other we sales opportunity to quantification so With hydrocarbons the that or composition greenhouse would those just the we of capability it's gases got of including of So the volumes

I Ryan, think on area I And go so, and that grow the And could be our ahead, we immediately would with third please. opportunities invest mean, an finally, one JPX.

chemistry component. these would we can our components for we've There cost lease issuance where the been We expense certain say, us as drive for supporting different where probably XXX% potential, lean, I we value the Now the of potentials for programs. in also the in there aligned proponent. additional our points green on side then, operational agreement communications, sales to had think opportunities. I I marketing from we've some some running -- be with would think finally, be the force say of technologies are even invest better capital. we I basins will us, entry we've operational our at And of part look aligned move sales chemistry that for part, on of efficiency at would the us that around would be structure investment as final will we've for in piece our and to parts the very been,

third done bit would management you've to to story shareholders. My question quite something with guys. Okay. Thanks be a who new align the for people are

review achieved money at order real where that guys yourselves? to and objectives this make time could Thanks. the sit stock in be us have If you for for you rewards to for

Well.

particularly to say much look I an I if say, no But worthy But because $X in thing for turned lot very a not We gotten price Eric. aligned in it this conference see, she take are I same knows, my a I'd around. year, share my confidence we I'll are myself. basically bonuses the wife, takes the And and at my to a price And of haven't increasing, and me vesting for occur call, do this wouldn't year. encourage honor bonus, again share unless a trigger, that to we future. would not the improving award, that of performance, is I'm revenue it. improving

working any score move And be to everyone Chair, awards. here system in accretion, Comp We that. share working on I'm a price order to so, did of to with to able get their And our in card this year, New is Harsha aligned Agadi.

well. that. as good had company without with days are those still share That than are [Indiscernible]. teams of on going well so absolutely go a number. more of And out, are scorecard associated do we've revenue none and as safety, X,XXX aligned. the of one is about management us safety And the great But pointed associated about importance Ryan If as And us earnings. those price the target environment, growth excited own our on to an well. we for with X,XXX up, days is doesn't scorecards clear be to they are every so, the -- primarily the maintain And important

So we're there with you.

questions Thank added you. you. Thanks for Thank color today. three all the and

you. Thank

next Bair comes Ascend Advisors. John question from Our Wealth with

Can folks. right? all morning me Good you. hear you Thank

hear fine. can Yeah. We Bonjour. you

right, number forth. The and hearing want again is are for just customer that to a couple of the I'm glad I on of, and out the that future? good. of right? saying so I picture I mergers got way. wanted to cycle of All the back the got you touch Kind questions. customers. very two one you that accelerate essentially Am out I clarify personally foreseeable

to I to wait with expires. it. But we that until mean providers much, chemistry optimistic about contracts discussions have Pretty be want them. they that with cases I other don't in some in We're have

year case, can it And that in that would It's open. into they occurred might And them comes with time then, we happen. not the work. offerings tenders. out we're In again. this the door have before and another that to But really get have uncommon until volume means mean, acquisition absorb so discounts differentiated And two that from leverage which do chemistry on year the their to get tender supplier, you likely have for we doesn't the a have they get wait new company. we that allow can't to the

make prior there so, let going. so acquisition, didn't both can post never pedal other there We company. And with you. We can It's we're a And good that on acquisition, and these to guys the the help better. off sides. gas great to have it's a relationship just having the you relationship have one company we build we

there. when think, actively they of I in just so matter It's we're again. a working start back And

may that might on customer? would customer so think second the be that it business combination offset able And you to that first those from help to be on then, to -- that reasonable get additional

budget without -- for I our bonuses. budget our customers we our with mean, is those or

can got for up additional We've business. we morning go in to you go, them. to we're get fill get so every to assume that And going

to just so for both be equity private replace the hopefully make a particularly or individually in our happen it's customers And of with to unfortunate and team, management that help. money value any bonuses but interest B, that's testament and them. them as us a It's our health best to these we from customers go A out customer help to create

get like Okay. the What bonuses an to I'm customer combination trying just acquirer… B, I'm okay? getting aside, at, it I that of sounds idea mean, the

Should give us upside. Absolutely.

acquirer revenue get The trying Yes. was That's from the company. I that was additional acquiring you pull that can the what one at. to your customer primary was

absolutely. No, Yes.

On opportunity. the upside be there should customer, second

hasn't they're suspect results that and we greater our customer than us with a a came our the we in will revenue them. with great go us expanding I They're with basins -- have offering. They're lost partner. we forward additional thing, as that pulling customer that having two be great back into That them. been Another We're years.

they're didn't And lose And we performance. confident got so got agreements and be due to contracts and it's get and lot What of that's didn't -- acquisitions that we've We of us honoring it's bad we've pricing. integration miss. contracts contracts point, place, were sell to great lose contracts were in to reasons a didn't a nature We to We that acquisitions those, -- these and to to again. that the these caused good competitor. just in lost John. these a where these to due lose existing

M&A. So that problem issue of a loss It's with these and there's transactional fundamentally customers. no in the simply Flotek occurs

I understand possibility that looking you Right. that. have for more. the I'm just

Okay.

question. let's So another move to on

offshore an was Asia-Pacific work your offshore JPX, that the mentioned first situation. You in in

Mexico, say, United activity in your there you But then the pretty been operations there So well? of held there, up, opportunity what that has far what's held States besides or the as up let's fact Gulf has the overall. JPX as muted

question. there good Certainly, yes, John, the opportunities. Hi, are

JPX focus onshore, especially upstream, onshore I is JPX, the started as both to right thing really midstream, well was as when which downstream. do, think the

actually -- focused is all, the were that. and realized was traditionally then us now are somebody them sort from. that here the of And that else. at looking with And we They to go on now us it out shared then So decided so they with never in that this at They we considered -- time because America. they market, North impressed. our were opens purchase which about much They past what where to in and onshore a fortuitous of were heard right very we buying we instead capabilities.

the up Mexico, Gulf in but offshore world. opens of elsewhere it So also the

Brazil? Yes.

Well, Okay. interesting. that's

to trying on now your some now? sales offshore Africa? Focusing on Brazil, develop focus direct have you specifically do Mexico, that So of force Gulf and of

Well, really so in focus who's for hired side. here recently somebody America, on North we was actually the upstream

Mexico. the So great a our It's focus, yes, will be on Gulf question. of

I it would is premium a as reemerges what their it to for fingerprint offshore, do really it a as is emissions in differently. a associated so they little it. Gulf Mexico to do frame very lower particularly can So, But and that it of it depressed the come the to market oil get of like What to want COX with they they a back been want has begins result offshore.

get can working based we upon you premiums COX associated we COX JPX, with So and emissions lower imagine how through has which what tell content that the with with way certain production. oil associated work it, that they're to

hydrocarbons working fingerprinting do goal we premiums? we're of for so, support through And the how

Okay.

Cost and in last hydrocarbon raw your produce fluids chemicals? supply narrowing production material with based given there? versus are situation forth? any question? that, rise competitiveness issues time Next chains you traditional And Have any you seen assets the of having green the forth. to chemistry What's so of costs so green

That’s question. a great

in the manovial natural more plant environmentally seen relatively that and we in got on -- with I positioned the they'd we less solvents, whether they've impact of an has are actually where come be seen friendly we for we've other traditional have have us, we have formulations think -- And chemistries, the there. applications advanced into would the I up. our is what differentiation say resource the gap solvents ethers are pricing glycols, the -- that products other that now [ph], have renewable and reality closed that on almost gone our

us quite as to these. And innovation So in mutual well to the we've respectable research a a group reformulate traditionally, in the very it range some our cost-effective bit after in puts we got BTEX go viable definitely advancement price solvents. done some solvency, other have options these traditional of head-to-head go and with resources and to as very

great been us. for that's So,

supply similar solvents. our that green the but seeing the side, we're disruptions the more chemistry. related across impacts other It's on On nothing board, hydrocarbon

to Gibson question-and-answer concludes any This turn to session. call for John our back remarks. like closing the I'd over

what you for candid on have and one that's forward what money Well, to I here. And give And our mission appreciate some appreciate we that is. work forward day. to to all opportunity good being the from focused call making the That's for here the today. for I everybody on We here being on on the and look to results looking being support shareholders the and we're appreciate conversations call. able next you we're I'm finally

execute So here and to focused talk we'll all we you improving opportunity executing, go we're do we Market's We as we're to improve need and the I think forward. and our us the to just stay best. and thank give soon. going things

now presentation. concluded. you for today's has attending conference The Thank

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