FTK - Earnings call transcript Q2 2022 | Flotek Industries, Inc.

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Operator

Good day, and welcome Flotek Industries Second Quarter 2022 Conference Call. [Operator Instructions] Please note that this event is being recorded.

Now I'd like to turn the conference over to Mr. Bernie Colson, Senior Vice President, Corporate Development and Sustainability. Please go ahead, sir.

Bernie Colson

morning, good and you, everyone. Thank participation. We appreciate your

for prepared Officer; call Joining today's we Chairman, Gibson, Chief and Officer; Chief Innovation; provide the of Bigney, will Vice President; Chief me and participating Operating Compliance Financial the our Interim business Carson, Counsel today and are Seham Silas, quarter. Chief Research call, concerning and remarks Ezell, Senior President John results Ryan on James General Executive and Nick and Officer On Officer. first

Following questions that, you have. will answer we any

We second have is our for now released our earnings available quarter announcement our website. which XXXX results, on

addition, to updated download In call. investor welcome to refer you during this are an posted and presentation we that

be comments As note for website. today's a being our make projections forward-looking we webcast, statements. reminder, is on also that available Please call any will today's events are expectations and or call on future regarding our replay a

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

John Gibson

end as quarter. morning, providing the second to really color Good forward well Bernie. thank been for our We've today since what's quarter our transpired some you, Thank XXXX. of and as results the on reporting the for of you joining everyone, results discussion looking

past growth X.Xx Flotek with as business first and We're sequential ramping supply revenue quarter months. in the contract envisioned full landmark year-over-year -- in transactional delighted and described we quarter full ProFrac Second in report to resulting the is detail X.Xx the that operated that agreement, which are the growth. marks up

more her We Seham improved in detail which cash interim describe our significantly have position, our remarks. CFO, also in Carson, will

ProFrac April serve as our total fleets an of reminder, a greater. of of It of to or chemistries their equivalent is our XX contract with XX% and As frac frac fleet, spans was covers downhole volume XX of full years effective suite X. whichever their

we are While fleets the X of remain an in confident over of quarters. coming days still in scope QwX, we in to ramp-up contract the early our full average contract the the serving

fleet to XX% have that or also our relationship by expect no numbers. the We reason is XX bounded

provide deliveries to exemplary incentive service, ProFrac due has ProFrac maximize recently the which close Services, As to QX. the in is of expected to Well we of chemical arrangement. to the acquisition continue structure announced U.S. from our Flotek

the frac by end a XX to 'XX. result, XX XX% operating bit math be expect active fleets says As of than of XX%. a Simple is they less

supplier transformational expect can entire business want strategic for chemistry win agreement and we to is that ProFrac. we for to purchase the goal fully we for fleet. scale up, from However, that be to our proving as and to its is Flotek really industry. ProFrac We desire This more be a of

thereby As comprehensive, solution and a water, a completion that this have protecting agreement, people. reduces greener integrated now and result vertically delivers of emissions land chemistries, E&Ps air,

In going his chemistry delivered in of on billion of and of the revenue to us revenue ProFrac's comments. customers that line a that Services. X our our numbers growth in is to revenues any in of U.S. growth stress increased agreement being to for quarter. rest announced proud sales chemistry And the from provide and XX, X $XX of the half a On Once of we for which million, scale total the XXXX create provide $XXX almost will million material revenue of transactional of in to about XX report in including able sequential performance nonexclusive, Well effort. acquisition I'm the benefit chemistry illustrate pounds QX able this see single QX which due chemistry, in full to of the we acquisition XXXX. should million more does customers to the the of strong million, revenue this million to quarter. we XXXX. entire the X.Xx the of backlog QX achieving details from complete, pounds we we've the contract add lot team's to It July number new color that next X.Xx continue year represents half impact is that not alone. very be transactional the delivered announce the chemistry successfully scale. include additional excess growth. more more over anticipate of anticipated growth alone, release, Ryan our million the to million To this for what done increase took again were and we top we decade, $XX.X of customers QX the XXXX. to a excess pounds $X I'll with also to Over XXXX, Flotek, ProFrac the delivered in in than expect our of to continue year On of promised contract we first pleased we've over of of quarter in growth XX pre-released ProFrac's we're energy volumes allowing pounds we grow customers, we've is to achieved, in

adjusted basically execution preempt Q&A. call, great briefly has presented signaled higher to in flawless ramp-up. on statement we topic release. we've and challenges, absolutely that that website, The I place the our and and We again that previous illustrating have a remain attempt as deck $X.X achieving adjusted margins. was expected. negative a expense our want line confident in We included on X press which QX. to EBITDA executed million, in QX some taken increase phenomenal are our that our EBITDA forward, detail in deterioration some our slide The to the will increase going costs steady quarters. on final commentary. and result in adjusted Ryan we summary, during questions On XX proved to expected That an drivers In greater an EBITDA we address ability provide a investor July activity, represents to the and bottom conference in improvement But QX. executing emphasized of growth over to committed recently the we of this slight with cost are associated in QX a accurate, quarters over we positive adjusted to we the our rapid has higher-than-usual experience posted coming in the margin we fall-through EBITDA

XXXX. to through and of half into trend continue this second 'XX the expect We

future are careless way share focus Our and rely we hinges coming minimizing customer a on caused concern a starting to success much a our the favors We core maximize to production strongly oil production, while of about is to products and by see gain change which where impact. minimizing success market gas chemistry. environmental customer, our maximize market producers minimizing our recovery years market the our odds give that the customers' on the on to This excited how ultimate cost initial more here reservoir ability and can capabilities of and are trend in maximizing to EUR in rates, as we damage position, result. set

Ryan? Dr. to Ezell. like to it over turn I'd Now

Ryan Ezell

strategy and John, morning. data solutions you, exemplifies partner our a quarter good of the Thank as for collaborative defining This be is sustainable, choice chemistry for to Flotek the revenue working. optimized growth was and

to the So get let's right highlights.

sequentially more XXXX. our far period revenue in of pounds chemistry than X.Xx mentioned, by In increased base customer million of total QX, in As XXXX. we surpasses same the total over of delivered year in and chemistry of XX to in X.Xx John the volume company total, which full delivered excess the

market we technologies market further our are fracturing This for Our solutions. sequentially. chemistry with the gaining grew the fourth share is XX% transactional hydraulic outpacing quarter, revenue that indicating chemistry straight fleet customized growth

to in XXX% Additionally, reduction our outstanding, only our terms a and inventory absolute gross sales sheet and a preservation reduction sequentially. revenue on outstanding balance improvement in working led on with a capital inventory XX% XX% XX% days days expanding focus in metrics

incidences, Finally, want their half first this ramp spills and and with and and to the time discharges. in quality. work hard service all no employees the safety X I for solid I'm dedication collaboration, Flotek activity with results pleased lost these outstanding contribution year. X the was And to thank in executed delivered of performance to this

of happy status like to of of transitioning key first the the to Now quarter. discuss providing ProFrac, which chemistry basins. is very with a I'm X ProFrac concluded beneficial contract operations details few QX, to a off an major mutually partnership In of we our start. the the I'd average fleets quarter for say X by across into solid the downhole full to

previously real of have are volume. location. the in calculated assumptions is was to has discuss contract typically fleet XX. terms delivered In we underlying is chemicals we the type numerous count delivered that their ProFrac quarter delivered able volumes We we that to like talking expect to fleets execute calculated of ahead fleets the the add assumptions very contracted take to run I'd negotiated to we less deliveries. be XX and conservative service, fleet enough to operational geographic the that per third driver not chemical And volume the contract into at the concerning number based as the words, of this product to on spent while expectations. fleet of ProFrac possible the or accelerated of a designed the contract. volumes the a to in in continue color we'll greater it's date, time and our execution details contracts about. specific double further And fulfill ramp moment than also on per our There other when

without key to the we In bringing of capacity utilization ability levels while our closer stated previously be capital, double our manufacturing chemical strategic our preservation investment. chemicals, logistics to supply We the for customer components certain manufacturing base. needing during XX-year the capacity distributed maximize supply, potential shift allowing place differentiated and to is with a model an manufacturing imperative prolific provides increases it Additionally, and such and the capital ability that explosive of We significant reality, than to growth have well additional the to our the have of being we in us this concern the proper satisfy shift the build high-volume life delivery that, partnership. without better no to situation is working made site, implementation. facilities. means far of to to of about in-basin successful And chemical our throughout that upside in-basin chain delivery solutions downturn

customer diesel pipeline can Now domestic gas customer our JPX we're of share our levels. expansion continue reduce field to operations reduction gas the usage looking will well fuel the at continued progress customers' to enable we in revenue pleased supply fleets. emissions, this on and make a integrated XX% capital quarterly content. concentration. greenhouse companies growing our experiencing commitment monitoring on believe to QX, by steady chemistry deliver of successfully I which designated risk real performance, we costs and well equipment XX% portfolio monitoring industry service with This by am protect proprietary on a minimize our dual X. both hydraulic reducing activity EPA powerful in be the represents In approach Tier includes natural time, to evaluate consistent and versus approximate we XX% field outpacing to stack emissions fuel that site. market digital our in We the to at Verax to By Tier E&P usage analyzers case gas diversify as fleets adhere by as we X and International able field. Subsequently, gas operators fracturing as use application we were and while quality energy the deployed to location to first an particularly

scope international commercially press up reduce the focused this between and differentiated leverage well chemistry to for agreement with we're for a pipeline. cost their to with in Verax our XX to in digitization also of More chemistry multiple on new release the have creating ProFrac. ownership refer And our our fuel fleets similar of elevated ownership importantly, X-year as both synergy opportunities on more forward to I'd of with we markets. as environmental to deploy details and total industry, dual to and going domestic and commercial ProFrac cost customers solutions to like of on the impact regard you scale this agreement recent to units

simply water growth. single minimizing our to estimated improving spirits risk, key our formation and of the volumes increasing we further top ultimate of allocation secure quality, And continue our So material and minimizing prices lines as are focused damage we leverage on purchase to focus product in of protecting every on the completion. accelerated speaking, recovery we with suppliers volumes future

logistics and of expected beginning SG&A of basins us tanks ISO related as The in increase accordingly about due to with our margins growth take advantage subsequently, to and This accelerate across during to but delivered increase industry-wide I'd fleet. ramp-up freight share logistics. levels. U.S. the cost the and than optimistic the expand also pricing deployment tank mainly mobilization and the reduce expense-related this and our more And of reflective of a XX operations. of deployment field volume the trends, that commitment maximize to deployment higher of on we our economies are feeling are adjusting I quarter, phase. scale not market to than are increase expectations we capabilities the solutions be healthier bulk global of quarter, and to As of recur are differentiated represents value we to our ESG, about spend was quarter-on-quarter. some impacts the and field time I'm like Cost while And will these driver biggest during the for and single that expect provide massive ISO freight steady-state margin our fivefold our volume in advancing which inflation our costs maintaining the are charges margins. ran activity in across suppliers, to execution basins storage future. chain, to summary, to inflation we With and in continue mobilization said, the storage the supply to gross increase various growth required the don't we at to the new focusing we we our customers, geographical of major excited discipline. to mission the

the to provide I'll turn financial key to highlights. Now call over Seham

Seham Carson

notes in considerations proved to Thank like begin you, I agreement our to would and ProFrac, of supply accounting Ryan. related to with quarter. by everyone second reminding which convertible the meaningful several be

we QX gain XX. $XX noncash quarterly the noncash the that ProFrac agreement million QX the supply in of associated a million loss noncash add entry to there for adjustment from of issued a in will the with as million go as the account The First, March over XX QX $XX a loss more QX compared notes on and stock $X.X million, price adjustments Big associated to the The will into to noncash March detail are additional of significantly was a in in to quarterly the notes $XX.X lower value mark-to-market be volatility to are and face of convertible swing of notes. XXXX X-year of the initial applied agreement noncash a while issued million significant second June $XX.X I $X.X the notes a financial resulted life as numbers mark-to-market these supply to bit gain of results. to want XX. million. XXXX of to adjustment quarter to had continue our little QX, with

to goes terms, down declines, be. simple when more quarter the the gain. gain we the larger stock will yes, a end end, And the quarter in the book from stock So

in convert are that entries take second that, the QX or heart noncash to notes book the also comes equity, will these and fact all whichever tranche the again, of I think we these we through only can XXXX to earlier. when convertible

assets. during a revenue quarter, noncash ProFrac reported contract to was reduction second Second, there the $XXX,XXX our to related

based XX-year is to predict U.S. reduction the dates it's the the difficult the of a revenue X as price to our contract convertible over as supply represents as as amortized which each want reflected the supply noncash these life other of The ProFrac amendment asset $XX Again, consideration on which and of the noncash the emphasize, issued the and the the be a cumulative be closing noncash of these in to of and asset, in QX expect adjustments, GAAP a ProFrac magnitude as share but and was reported million in notes approximately agreement fair I contract all agreement tranches financials. see additional Our value value initial variables. notes are for quarter, to can will QX. adjustments

in notes SEC refer to the detail If are into assumptions. underlying for our valued, financials the convertible interested getting and the of you're how methodology please

the in $XX.X QX moving to quarter XXX% XXXX, Consolidated revenue income year. the to statement up Now for million XXX% second of QX. on compared to was quarter last the and up compared

attributable million Excluding with reduction asset, last XXX% and associated revenue contract the to up cost compared was of in XXX% $XX.X Consolidated sold revenue up was noncash million during negative outlined. goods agreement quarter with Increases of year-over-year. $XX.X QX. in were $X.X the from primarily million ProFrac negative XXXX negative XXXX. ramp-up $X.X as expenses million previously and in to $X.X supply million, Gross the QX in was margin down QX QX associated Ryan

In $X.X compared $X.X to XXXX, noncash up of the quarter Excluding QX gross compared above, up SG&A margin second million XXXX XXXX. QX was reduction in of mentioned revenue XX% was and XXXX. million million QX the negative $X.X to XX%

PIPE transactions. to on the took increased labor, due relating legal and contract of professional and expenses consultants fees we from use additional ProFrac As to fees

professional to in included million SG&A However, recur. $X.X was expected of fees approximately

and The to million. $X.X notes. last an increase for was noncash negative last year QX of million, from was negative $X.X gain convertible $X.X major $XX million swing year's Our of market on million million the non-GAAP positive the driver the significant QX EBITDA $XX.X positive

for XXXX EBITDA second adjusted a $X.X $X.X $X.X and million million. was compared the to million quarter's last of quarter a quarter second loss of non-GAAP $X.X Our of loss decreased loss which million,

year. we've discussed, of to identified EBITDA areas second place in already Ryan and plan in underperformance As in QX improve the adjusted half the of a have

Let's million impacted improved quarter, move had quarter, $XX.X The the of February million the capital and the now. At million PIPE million sheet $XX supply was XXXX. cash by agreement. $XX.X improved quarterly end on the at million the and which first working to June we of $XX.X by favorably partially closing and second the losses, cash end end the previously mentioned much equivalents ProFrac issuances position in of and $XX.X of the PIPE the and the versus operating several and for offset the of at balance fees included metrics,

April million million part the XXXX, in noncore we addition, Waller, recorded of the $X.X Texas a and facility In as of monetization for sold assets, $X.X gain.

we XXXX continue second while As into top our significantly growing of working our and line goal half look to revenue. capital, the forward XXXX, to leverage is improving

offers coming provide on to We also quarters. an and Monahans, update evaluate facility our expect continue to for Texas

his help working we are with While in on continue to our on this various to cash than the At John Sandler favorable we generation now needs. we activities final a growth remarks. pass relationship address point, much the position additional I back for will future been, capital more call cash Piper have

John Gibson

and I'd like future helping contract. to shareholders our an of our incredible with very for secure you Seham. unlock thank business the much, opportunity ProFrac the thank again Well, us

ability going at convert about First I to with career, backlog, robust been a company I've growth time such and earnings revenue our forward. into am in optimistic my a

you are are I'm in call and the same team and proud Thank the delivering year to These continued and you flawless the quarter with and headcount Our committed the guys the to no your much them. support, last look flawlessly footfall. professionals. forward imagine very going work executed questions. thus delivered joining for we far a with execution has Xx volume forward, ramp-up

Operator

be First will Donald question Rice. from Crist, Instructions] [Operator Johnson

Donald Crist

Is -- where X per about either in wanted your the your good quarter the providing to you you presentation, the supply? whatever or run in I to talked roughly would in ramp-up ProFrac that go to I XX add fleet. about you wants rate X you to ProFrac know a to talk in quarter. get XX third fleets until to forward or the chemicals fleets

Ryan Ezell

see Don, about looking little we're it looking this say average at quarter. to X we're this is add right? down looking would per the aspect at average, talk Yes, And that is where that of a where as at we quarter bit. X I Ryan so, Ezell. right steady-state to now. an quarter appears standpoint, So and up to kind X of we go per from But a be

John Gibson

original be sustained U.S. the then them to until then working I with in that it the XX, crews contract. over with our get we be close after additional And U.S. to add think will And come Well. to we'll try they Well,

Donald Crist

targeting area of as Or just -- kind kind to you all going roll Right, you Or depending kind as I in where like, next? fleets able today? X the start in the they And take of expected when on a of would are across pad country are they off of to the onto constraint their is there of well. to rollout? your operations have further, that are geographic are geographic a step a you

Ryan Ezell

any not have limitations geographical currently Yes. operations. We do on our

the We including regulations. all now, tighter in U.S. operations some at have basins environmental right the major chemistry and in Wyoming the delivered in

chemistries are too. there registered Our

may So we go. fleets by are good anywhere across limited not and the all we're basins,

Donald Crist

Okay.

on rolling kind between of not rollover in you're So -- pads out geographically. depending customer would

Ryan Ezell

this We're correct. of the also we're our ProFrac, seeing run hydraulic And business well. fracture too. slickwater internationally mean, what outside That's as business, includes, international doing on I

of a up. we're the just have matter customer when and we the obligations here. fleets picking geographical any So rollover don't It's of

Donald Crist

to quarters. and I a a with out the XX ProFrac. on or Okay. what rolling helpful. implications, going provide roll say want that become to ask any don't would year, probably just over fleets number Obviously, color whatever But JPX. could to about, per quarter you would talk fleet Can Obviously, one the the revenue next you per forward? contract it there market how you'd want And good you provide metric several be out could XX one, on like I know or

John Gibson

probably But industry JPX. think start little out taking analyzer ProFrac gas of and field solution. giving advantage premature, about if really the a It's doing, the by on implementing Donald, is what revenue the they're you to leading numbers Verax

So they've been volumes able of as as to diesel XX% the more. by reduce or much

as Now across fuel, fleets dual We reducing when for we begin reduce of you industry exclusive there at with think ProFrac. towards able this look really they our XXX not think whole responsible our that is be reduce gas. to regard COX diesel, with the to the that so industry, industry this to the we're our out move emissions to out program should greenhouse all and commitment build most as

in JPX public critical that to and strategy think I is is component a every appropriate company.

Donald Crist

And ProFrac, as this far as that could for rollout XX? the for year do you

Ryan Ezell

as designate through more as about we – about we to -- year equipment ones And until per XX the capital acceptance the they we're it's more it's the specifications. rollout and fleets actually the fleets But contract already we're do up into on. the how the now. two, continue on the into we'll own the We're range position to

Operator

from will question next Jeff Tower Robertson, be Research. Our Water

Jeff Robertson

all frac few volume talk how fleets. Can minutes. my was the did I'm was there amount connection compares I under -- the sorry -- dropped for ProFrac can originally you if think about what contract, are Ryan, to to supplying that you this, contemplated I a under covered the you agreement? a that you related to and ProFrac the But you volume

Ryan Ezell

Yes.

X executing The locations quarter intensity as So et as of average reason x sell an proppant on And for fleet is the contracted bringing is fleets for what which it's -- fleets per volumes in have the brought disruption we on to we various as various X contract. on of per until are fleets we XX geographic see And to we above right volumes. we exceed on, a the cetera, baseline fleets date, we're -- reach any slightly per on unique now. number the to that. contract to quite the to that or don't calculate based in of

John Gibson

extensive data, would what our sort calculate have we that volume be average by plus And basin. experience the Jeff. of I data to use

it's a dependent volume so And geographically number.

some were baseline that to which more they than The a fluids trying guarantee, could So get so they basins others. make did. beauty they of used are to it is a

And baseline, we're finding were go below that they so would they the And those upside never think and on were conservative case. to some that finding they be there's But confident I to that we're numbers. that.

Jeff Robertson

time, revenue So have -- there's that I some is the John, original is upside upside? that you does contract some mean revenue talked there mean, over to if continues, trend there that about? numbers all

Ryan Ezell

of above the is, come there Group as Yes. Service Well from believe addition only also original do potential on We off. not pure just that as the executing U.S. we're that, themselves fleets but the XX fleets the volume

John Gibson

trying a It's surfactants, you can more they reservoir that's from in too, just production from reducing need reservoir it's to a that to margin, that, during requires maximizing this comments, chemicals, said place activity. and that, most as initial I happened of shift which we higher curves. beyond But and doing ultimate minimizing do the actually my the cost, as see COVID. is the In and going a recovery to the decline than that what and actually for well. get optimize what are complex nano drive fleets manager we that, drive of really order our our in they more customers impact to as And be a stimulation their that ProFrac business going think recovery

our well where for that strengths think bodes competencies core and I are.

Jeff Robertson

of second half chemistry did ramp-up 'XX. think expect of have the to all to of can you what X out play pounds million non-ProFrac 'XX the what customers -- about Ryan, compared you 'XX? the and in sight John And talk I non-ProFrac you least how of you for you 'XX? -- into over Did to customers line at

Ryan Ezell

really expectation those gain the we going. expansion We're in of that for already been that September picked market share technology in about Yes. the QX, quarters. would starting rolling us the see into transactional of in because core of to us We're also question month quarter-on-quarter is start to and we'll last up excited the excited some for are market hydraulic heavy growth what of business great our fleet wins the our the end such QX. fracturing, at our And hydraulic continue about and advanced solid And I a through in got that's there's outpaced for acceptance the, doing some ProFrac. lot business lot seeing we're East X is the as around say, acceptance international rollout of of chemistry It's in is of We've the fracturing XXXX. the rest -- well well. our this to some the a where acid stimulation slickwater international Middle as we're a as of that as gaining fluid deliveries discussion

Jeff Robertson

talk X And is did -- capital Can the the to the warrant the needs sheet, mentioned set June. just raise current requirements balance Seham, you you capital you on you over months? up about sheet all can the to prefunded next X late how balance the in working and meet

Seham Carson

That's Yes. good a question.

ramp-up to opportunities at from as be and making come with the well fund closely you sure fund it. up well, able in the our of And we're that set addition looking I up able to us summarize very be all with other will things to there, and handle PIPE to think the we're the to it. set strategizing suppliers,

John Gibson

terms our our side. out additional And think really combined help everything a can, on us the suppliers collection to and our extend And going are up managed minimize feel of continue to important flow we've strong terms working the our to customers. as we've a like those we ramp-up. we I payment we to to got capital cash forward with sufficient. X ramp Jeff, mean the and doing look in have for need and we I with reduce pointed it's how this, ones, And the looks couple cash like I on fund we're

Jeff Robertson

the with to no or existing question incremental you that both Is last facilities for capital or expand John. can with have non-Flotek facilities capital and chemical -- Flotek guess you correct I customers Ryan correct? that real all required. capacity It's

Ryan Ezell

demand outperforming actually to in capital have that in any our closer our terms up profiles at sourcing for a and manufacturing of us, that moving, we're it's we lowering would locations not of the up, rate of on during facilities transition we in in we've ability pressure we would in. have on ramp run how improvements our single and Because Oklahoma, quite geographical the focused in-blending make really the say, has this as like is And I said, our expectations and bit main doing shift really excited, manufacturing That the core correct. to to they're a and cost now, entire say, I utilization eased our so, sub-XX% a And on we're our meeting probably CapEx capabilities spend and I customers all like expand on to we've the a capacity. right Marlow, in facility our to, ramped downturn, major realized there.

so above original probably we for shift expectations any do just our huge than work expenditures night. expect large well to at capability to continue us expand to capital adding workforce there, without And a a other

there. the about position happy really we're So

Operator

next Our Swergold, be Eric will Capital. question Firestorm from

Eric Swergold

you little go it I know from you had more? accounting into perspective. off a guys written Can JPX an

little money see a money you as also pipeline And how go -- help having remind second save question. bit life a separate a here. well -- into is might unrelated can Can surprise to companies a nice and diesel. as refiners this it then us you and on it money. saves touched you this But save about talk So how producers

East on national you detail the companies might in international. happening with oil how them? with more a into on business touched what's the little Can Middle go and You expand your

Ryan Ezell

amount fracturing would different gas see of quality. this in So would what a little the the when doing pipeline about into other opportunity say, come at, that has natural build in massive in goes monitoring to we with has can a other that now in compression scope talk monitor we We very with gas about I look the -- and stuff. field [indiscernible]. JPX we're increase hydraulic We're technology, I'll equipment excited ProFrac at bit say the executing fleets believe we're looking the like of I

huge We're we've acceptance still trans at really, for of us combination other of strong more a us excited gas And lot what’s midstream really there was there's that's and what looking got how components. and opportunity monitoring about And company two in opportunities to transition prevent we're promise So digitization field of as forward. we're the mentioning opportunity the going bring that terms mix contamination. that what's a getting field seeing further as and going to of great different terms downstream, on a quality, our deployments on there. new in we're

John Gibson

phone you? at Eric, have do you have computer to don't on your

Eric Swergold

out have computer. no of my I sounds coming beeping

John Gibson

here. feedback get Just

ahead, it's little better now. go a So

Ryan Ezell

Aramco core slickwater of aids the] applying Oman, also what's advanced We've got in the we're And really there, opportunities when business -- we're what with in -- ADNOC opportunities. for then is in Saudi UAE the and stimulation growth would CAGR doing see international Saudi. there's look there we're around And [factor that's that in a and we going the NOCs stimulations, at we more and in a those at also our look on we're with doing when about substantial for steady carbonate-type growth chemistry. what's NOCs, what I exciting side say, flow-back components on with the that lot Kuwait, of looking trials also, what is what great of we're continuing the to with doing

there, the chemistry future say, opportunities side. be parse would through steady there activity the cycle on I consistent, in big the So that will

Jeff Robertson

helpful. That's

John Gibson

a adopt you've value. sales been JPX meeting down, to and because real parties, on and partner. Verax ProFrac's quick you are like the a the meeting. great to it's got It's see And strategic for they when opportunity sit value creation both not the The they create

of a ESG mean of so reducing and our to they they're act putting out. focused to sit advantage quick taking when on talk of COX, sales performance, I an fleets the generation you're pleasure them to a a are your being with these in places, improving as see working and when it's new the real And they It's gatekeepers are And really fundamentals cycles internal we value. got sort of into privilege other that company. guys. creates great on where run you've focused not opportunity longer

Operator

[Operator Bill of WDH from next Instructions] Hyler question Our will Capital. be

Bill Hyler

a XX, diluted Yes. payments questions I And us appreciate elements interest June had you call today. couple the ProFrac And on the the the of other fully does stock in give 'XX. some all count number going QX. employee will the PIK idea I where than also, of share you and approximate PIPE? contract, the comp, Do share have count. of PIK forward, the maybe these incorporate think QX payments at

Nick Bigney

of calculated is Nick. includes of Great way earnings all is -- just the been for releases count question. what's that on share The This purposes converted. already the XX-Q,

that million that I well point end, as $XX do So back exact and when they're and included think minus. We you're QX well. warrants. number the in looking probably it, that probably call people in as is that XXX math, QX I'd notes looking order the share not you're convertible the can the big Depending on as shares, roughly there's or also plus when number. you can of, But at in million will the convert the next on convert,

Bill Hyler

think June you're XX. for showing $XXX a diluted average I No, million fully

whatever, include the full a does number, that -- anticipate, number what don't does probably the I which But maybe you're fully know, today? there's in showing that quarter-end So number that already. press did diluted XXX or release that

Nick Bigney

the presumably converted shares have that treasury. X in about million I $X than look convertible on million The actually that and right will now, haven't the the $X number filed and of to million would that other them back have XX-Q about today, yet. issued one our gets outstanding directly. numbers you'll be at later go I see roughly And then

won't in XXX So entirely number. -- not I'm included number sure the be they the how

John Gibson

Yes, you us some we back come on that let can do to where --

Bill Hyler

back. I you the XX-Q can do When to expect circle filed? be

John Gibson

this be evening. Should

Operator

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

John Gibson

year call. And create. having you're molecules and being We're both everybody our shareholders Appreciate chemistry we what everybody the roughly with to really and going you think upon quarter twice to a got with of company, are care. this. with beginning our digital, and on through to greatness that repeat, we've committed some to now where and working as is can same people, for and making I Thanks. is We're have create an us forward are a up Appreciate of this. quality we're great people that mean, delivering sticking people headcount. all you've us again, Take and we value about success. look done we a just that. dependent And just great a show the I’d wealth in opportunity the what to you the that And well. -- did our see

Operator

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

disconnect. now may You

Bernie Colson	SVP, Corporate Development and Sustainability
John Gibson	Chairman, President and CEO and President
Nick Bigney	General Counsel and Chief Compliance Officer
Ryan Ezell	COO
Seham Carson	Interim CFO
James Silas	SVP of Research and Innovation
Donald Crist	Johnson Rice
Jeff Robertson	Water Tower Research
Eric Swergold	Firestorm Capital
Bill Hyler	WDH Capital

Flotek Industries (FTK) 10 Aug 222022 Q2 Earnings call transcript