Flotek Industries (FTK) 8-K Flotek Industries Provides Financial & Operational Update, Provides Details of Investor Presentation

Exhibit 99.2

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.

September 26, 2011

John Chisholm, Chairman and President

©

2011, Flotek Industries. All Rights Reserved

1

Disclaimer: Forward Looking Statements

Presentation to the Independent Petroleum Association of America San Francisco Oil &

Gas Investment Symposium

•Overview & Business Strategy

•Flotek’s Technology Portfolio& Business Drivers

•Chemical Technologies and Related Logistics Services

•Drilling Technologies

•Artificial Lift Technologies

•Financial Overview

•Capital Structure Review

•2011 & 2012 Objectives

•Conclusions

2

Flotek Today

•

Houston-based oilfield services company with focus on value-

added drilling, completion and production products.

•

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.

3

Flotek’s Technology Portfolio

•

Focus on improved marketing efforts

•

Increased focus on depth of Flotek market combined with expanding breadth of

market in drilling technologies segment

•

Grow exposure to end user/beneficiaries of Flotek chemical technologies.

•

Look

for

select

“new

markets”

for

artificial

lift

technologies.

Continue

select

marketing of Petrovalve when appropriate.

•

Is “Flotek Inside Your Well”

approach.

•

Continue to focus on more balanced revenue mix: liquids vs. natural

gas.

•

Pursue international opportunities through partnerships, established

relationships and key agents.

•

Focus on Basin Supply relationship. Select opportunities with chemical

technologies and Teledrift.

•

Continued growth with Saudi Aramco; Opportunities in Turkey

•

Follow the integrated service companies into key unconventional markets.

•

Opportunities for Flotek chemical technologies to be utilized in

Enhanced Oil Recovery (EOR)

4

Flotek’s 2011 Business Drivers

•

Core Competencies

•Our

chemical

technologies

focus

on

developing,

manufacturing

and

distributing

a

wide array of specialty chemicals used in both the primary and secondary efforts.

•Our unique and patented chemistries are used in cementing, stimulation,

acidizing, drilling and production.

•Also provide logistics technologies which manage automated handling, loading

facilities and blending capabilities for energy services companies.

•Key Product: Patented, Best-in-class Complex Nano-Fluids (microemulsifiers)

that are environmentally friendly and used to meaningfully increase production

and well integrity in unconventional tight gas and oil formations

•

Key Business Drivers

•Continued trend toward unconventional resource plays in North America.

•International

growth

in

unconventional

resource

plays

–

Flotek

chemicals

involved in recent activity in Poland, Turkey & Paris Basin.

•New product innovations, including focus on liquids, enhanced recovery and

basin-specific solutions.

•Marketing penetration to service companies and ultimate beneficiaries with better

understanding of positive economic impact of Flotek proprietary chemicals. 

•Environmental

sensitivity

benefits

Flotek

–

First

patent

focused

on

“environmentally

friendly”

chemistry

filed

in

2003.

5

Chemical Technologies & Logistics Services

•

Core Competencies

•Focused on designing, manufacturing and distributing a diverse inventory of

downhole drilling equipment with applications in oil and gas drilling as well as

mining, water and industrial drilling applications.

•Flotek Rental Tools on > 25% of all rigs in the United States, from

“commodity”

tools to “specialty”

tools and equipment such as drilling motors,

jars

and

stabilizers.

2010

was

focused

on

increasing

penetration

and

stabilizing

pricing.

2011

focus

on

increased

service

density

per

well

and

continued growth in overall market share.

•Key Product: Teledrift Measurement While Drilling (MWD) tool. A leading

choice of drillers needing accurate, uninterrupted drilling measurements in

vertical section of all wells.

•

Key Business Drivers

•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, Haynesville & Eagle Ford.

•Teledrift is important focus: Continued growth in domestic markets. Pricing

strength in Permian Basin.

���International growth in Teledrift is key. Focus on Saudi Arabia and Middle

East, Central & South America, Russian Federation.

6

Drilling Technologies

•

Core Competencies

•Focused

on

assembling,

distributing,

installing,

and

servicing

a

broad

spectrum

of pumping system components including electrical submersible pumps (ESPs),

gas separators and other services that largely support coal bed methane (CBM)

production, primarily in Powder River Basin.

•In addition, our Petrovalve patented production valve and components is used by

a plethora of international oil and gas producers in downhole production

assemblies.

•

Key Business Drivers

•Key customer relationships in Powder River CBM. Flotek improved key customer

relationships in 2010.

•Focus on service relationship in Powder River Basin. Every production assembly

Flotek installs equals additional service revenue in future years.

•Work

to

find

new

markets

for

niche

CBM

product

applications.

Gas

price

and

regulatory considerations will drive opportunities.

•Petrovalve

is

wildcard.

Orders

are

“lumpy”

but

margins

are

superior

in

international markets.

7

Artificial Lift Technologies

•

Revenue

of

$108.8

million

in

first

six

months.

•

Operating Income of $17.2 million.

•

Net income of $7.6 million; extraordinary items impacted

results.  GAAP EPS (diluted) of $0.17. 

•

Strength in Chemical and Drilling Products segments.

•

Growth in Complex Nano-Fluid microemulsions with

focus on key unconventional plays.

•

Expansion of chemistry applications to liquids in both

primary and enhanced recovery.

•

Teledrift and motors continue to lead the way for

drilling products division.

•

International opportunities beginning to have impact.

8

First Half, 2011 Highlights

Outstanding Debt (in millions)

•Senior Secured Debt

$   0.0

•Secured (Second Lien) Convertible Notes*

$  36.0

•Convertible Subordinate Debt*

$  70.5

Total Outstanding Debt

$ 106.5

Equity Recap

•Shares Outstanding (August 5, 2011)

49.8

•Other Potential Issuance (Warrants, Options)

~  5.0

Total Potential Fully Diluted Common

54.8

Cash as of 9/20/2011

~$ 23mm

*Debt matures in 2/2028; Put/Call Option 2/2013.

Data as of June 30, 2011 except as noted

9

Select Balance Sheet Data (unaudited)

10

2011 Financial Objectives & Action Plan

•

Conversion of Preferred Equity to Common Equity

•

Completed 2/2011

•

Continue to Focus on Balance Sheet Improvement

•Consider options for outstanding convertible debt. Toolbox is more

robust than it was a year ago.

•

Completed $4.5 million debt-for-equity exchange on 5/12/2011.

•

Will consider additional opportunities for notes in the coming months

including exchange opportunities and potential re-crafting the convertible

notes. Will consider secured and unsecured notes. Will be strategic,

opportunistic and incremental.

•Consider options for more conventional senior-level financing.

•Analyze options for growing cash balances and better management of

financial information.

•

Continue to focus on intrinsic growth with cash flow maximization;

However, will consider strategic, “niche intellectual”

partnerships and

acquisitions that are strategic, accretive and market-driven.

•

Private placement of 5/12/2011 which raised ~$29.5 million will effectively

eliminate senior debt. Plan to complete principal repayment this

month.

•

Completed

new

Revolving

Credit

Facility

–

Announced

9/26/2011

•

Significant Improvement in Revenue

•

First

Six

Months

of

2010

-

$59.5

million

in

revenue

•

First

Six

Months

of

2011

-

$108.8

million

in

revenue

•

Year-over-year revenue increase of 83%.

•

Significant Improvement in GAAP EPS

•

First Six Months of 2010  -

$0.84 Loss per share

•

First Six Months of 2011  -

$0.17 Earnings per share

•.                   

Improvement

in

Cash

Flow

•

Cash

Balance

on

June

30,

2010

-

$5.3

million

•

Cash

Balance

on

June

30,

2011

-

$15.1

million

•

Year-over-year cash balance increase of 185%.

•

Balance Sheet –

Today vs. 2009

•

August 31, 2009: Debt ~ $144 million; Cash ~ $3 million

•

August 31, 2011: Debt ~ $108 million; Cash ~ $17 million

11

Operating Comparisons to 2010;

Balance Sheet Comparisons to 2009

Significant

•

July, 2011 Revenue of ~ $23 million

•

August, 2011 Revenue of ~ $25 million

•

Cash as of August 31 was ~ $17 million; Cash as of

September 20 was  ~ $23 million.

•

Operational Highlights

•

Continued progress in “direct”

marketing of Chemical Segment.

•

Growth in Teledrift, Motors and other tools business.

•

Artificial Lift continues to be impacted by low natural gas prices

and poor Rockies pricing. Service revenues remain firm.

•

Remain focused on operational efficiencies, pricing integrity and

margins. 

12

Third Quarter, 2011 Snapshot (Through August)

Lead

•Lead in innovation, responsiveness and service quality for our customers in

each of our key business units.

•Senior leadership leads by example, setting the tone and course of success

for our front-line team members.

•Lead our industry in performance and returns for our stakeholders.

Support

•Support our customers by anticipating their needs, developing new products

and innovative ways to provide “best-in-class”

service.

•Support the Flotek team by anticipating their needs, providing the tools for

success and listening to every suggestion on how to improve our operations,

culture and results.

Accelerate

•Accelerate Innovation

•Accelerate Efficiency and Teamwork

•Accelerate Growth and Stakeholder Returns

13

2011-2012 Objectives

14

IR@flotekind.com