HOUSTON, Dec. 30,
2024 /PRNewswire/ -- Flotek Industries, Inc.
("Flotek" or the "Company") (NYSE: FTK) today provided an update
regarding flare monitoring regulations issued by the Environmental
Protection Agency ("EPA"). On December 20,
2024, the EPA issued proposed amendments to its New Source
Performance Standards and Emission Guidelines for Existing Sources
for the Crude Oil and Natural Gas Source Category ("OOOOb") rules
issued on May 8, 2024, with respect
to monitoring the Net Heating Value ("NHV") of flares to ensure
that methane emissions are minimized. While the proposed amendments
address many industry concerns regarding the complexity of the
testing, they do not materially change the Company's outlook
regarding the potential addressable market for monitoring services
including the scope of installations that will be subject to
compliance.
The EPA's proposed amendments make discrete technical changes to
the vent gas NHV continuous monitoring requirements for flaring
operations expanding some of the exemptions for new testing
requirements while limiting the number of flares that were
"generally exempted" from compliance testing. The proposed
amendments are open for comment for 45 days after publication in
the Federal Register. While the Company believes the regulations
should allow the industry to confidently move forward with
compliance testing, impacted companies continue to face limited
technical, staffing, and analytical resources to conduct these
challenging measurements.
As previously announced, on July 12,
2024, the EPA notified the Company that its JP3 system had
been designated as an approved measurement technology for the
initial flare regulations. The Company's state-of-the-art optical
instrument, designed for the precise measurement of NHV in
flare gases, was the first to be approved as an alternative method
under the initial regulations.
Following EPA approval, the Company's Data Analytics segment
began providing flare monitoring services to its customers
utilizing its proprietary JP3 VeraCal flare monitoring analyzer.
Third quarter revenues from its Data Analytics segment increased
30% from second quarter 2024 in part due to new flare monitoring
services as the VeraCal analyzers have now conducted numerous
compliance tests since receiving approval. Flotek has invested in a
fleet of analytical assets to help resolve industry resource
restrictions while simplifying compliance.
Ryan Ezell, Chief Executive
Officer, said, "After a diligent assessment of the proposed
amendments, we continue to believe that the flare monitoring
regulations provide a meaningfully positive opportunity for our
Data Analytics segment and overall business. We are confident in
our ability to offer our customers, and the oil and gas industry, a
superior and approved technology, utilizing autonomous, real-time
measurements, to monitor flares and reduce emissions. We expect our
Data Analytics segment to experience significant growth in 2025
leveraging off our 'VeraCal analyzer', which allows our customers
to comply with the updated flare monitoring regulations.
At Flotek, our strategy remains focused on delivering
differentiated technologies at the convergence of chemistry and
real-time data solutions."
About Flotek Industries, Inc.
Flotek Industries, Inc. is a leading chemistry and data
technology company focused on servicing the Energy industry. The
Company's top tier technologies leverage near real-time data to
deliver innovative solutions to maximize customer returns. Flotek
has an intellectual property portfolio of over 170 patents, 20+
years of field and laboratory data, and a global presence in more
than 59 countries.
Flotek has established collaborative partnerships focused on
sustainable and optimized chemistry and data solutions, aiming to
reduce the environmental impact of energy on land, air, water and
people.
Flotek is based in Houston,
Texas and its common shares are traded on the New York Stock
Exchange under the ticker symbol "FTK." For additional information,
please visit www.flotekind.com.
Forward-Looking Statements
Certain statements set forth in this press release constitute
forward-looking statements (within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934) regarding Flotek Industries, Inc.'s business,
financial condition, results of operations and prospects. Words
such as will, continue, expects, anticipates, intends, plans,
believes, seeks, estimates, outlook and similar expressions or
variations of such words are intended to identify forward-looking
statements, but are not the exclusive means of identifying
forward-looking statements in this press release. Although
forward-looking statements in this press release reflect the good
faith judgment of management, such statements can only be based on
facts and factors currently known to management. Consequently,
forward-looking statements are inherently subject to risks and
uncertainties, and actual results and outcomes may differ
materially from the results and outcomes discussed in the
forward-looking statements. Further information about the risks and
uncertainties that may impact the Company are set forth in the
Company's most recent filing with the Securities and Exchange
Commission on Form 10-K (including, without limitation, in the
"Risk Factors" section thereof), and in the Company's other SEC
filings and publicly available documents. Readers are urged not to
place undue reliance on these forward-looking statements, which
speak only as of the date of this press release. The Company
undertakes no obligation to revise or update any forward-looking
statements in order to reflect any event or circumstance that may
arise after the date of this press release.
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SOURCE Flotek Industries, Inc.