Flotek Industries, Inc. Announces Appointment of Industry Veteran David McMahon as Vice President of Artificial Lift; Strategic Expansion Plans for Artificial Lift Technologies
HOUSTON, Jan. 15, 2014 /PRNewswire/ -- Flotek Industries, Inc. ("Flotek" or the "Company') (NYSE: FTK) today announced the appointment of David R. McMahon as Vice President of Artificial Lift Technologies and plans to expand the Company's profile in artificial lift.
Mr. McMahon has spent the last twenty-two years of his career in the artificial lift industry with various units of Baker Hughes, Incorporated, most recently serving as the Area Manager for the Rocky Mountain region for artificial lift. He has also served in managerial and sales positions for Baker Hughes Centrilift in Wyoming, Texas and Oklahoma. He began his career as an engineer with Baker Oil Tools in Broken Arrow, Oklahoma in 1991. He is a graduate of Oklahoma State University with a degree in Mechanical Engineering & Design and holds a Masters of Business Administration from the University of Phoenix.
During his tenure as Area Manager over Baker Hughes' Rockies artificial lift operations, Mr. McMahon was instrumental in developing Baker Hughes' artificial lift presence in the Williston Basin, one of the most dynamic lift markets in the country. Moreover, he was responsible for increasing margins and efficiency as well as posting exceptional safety records while, at the same time, expanding the operations into three new locations over an 18 month period. As an engineer he was responsible for new product design and development as well as the development of systems which increased customer responsiveness, satisfaction and profitability.
"Flotek is delighted to welcome a leader of David's caliber to our team as we reimagine the future of our artificial lift business and refocus our efforts on a market that we believe is poised for meaningful growth in the future," said John Chisholm, Flotek's Chairman, President and Chief Executive Officer. "We are flattered that David chose to bring his wealth of experience and successful track record from one of the leaders in artificial lift with a vision to build a business that can now strive to become a premier competitor in innovative lift technology for emerging production trends that should push demand for such services over the course of the next several years."
"I appreciate the opportunity that John and the Flotek team have given me to build a leading artificial lift organization to address the unique needs of emerging unconventional production both in North America and abroad," said Mr. McMahon. "My background affords me a unique perspective on the business, one that will help frame our successful, service-oriented offerings; allow me to leverage my engineering sales and operational expertise; and assemble a team of exceptional artificial lift professionals with decades of experience in the business to build on Flotek's already solid reputation as a niche provider of quality lift services. Combined with the support and resources of Flotek, I am convinced we will make a difference for our clients both today and well into the future, especially as the lift needs of unconventional production accelerate in the coming years."
To facilitate the growth in artificial lift, Flotek plans to commit $4 million in capital to new equipment and improved facilities in key basins as well as open a new administrative and marketing office in Denver. Mr. McMahon and his team will evaluate existing products and services with a focus on improving penetration and margins as well as expanding the Company's service offerings from its operations in Gillette, Wyoming; Vernal, Utah; Dickinson, North Dakota; and Farmington, New Mexico. The Company also plans to open three new service centers in key locations in the coming year. In addition, Mr. McMahon will focus on continuing to grow international opportunities, including the sale of PetroValve systems into South America and other key international markets.
Data from independent surveys suggest global demand for artificial lift services should be nearly $13 billion in 2013, with nearly $6 billion of that in North America. By 2018, the global market is expected to grow to over $16 billion, with approximately $7.2 billion of artificial lift service demand in North America. According to data from World Oil1, nearly 95% of all producing oil wells are on some form of artificial lift with that number expected to rise with the majority of new production in North America coming from unconventional sources which require lift intervention earlier in the production lifecycle.2
"Flotek's commitment to the future of our artificial lift business should be strong and clear," added Chisholm. "For the first time in Flotek's history we have the right person at the right time to make a strategic commitment to one of the fastest growing segments of our industry. David McMahon's expertise and leadership combined with Flotek's commitment to technology and world-class service should provide plenty of opportunities to become a leader in lift technology. Moreover, we will commit the necessary resources – both financial and intellectual capital – to ensure we are on the leading edge of future innovations for a rapidly evolving industry. While these changes won't come overnight, we are excited about David's leadership and vision in creating a world-class artificial lift business."
1 World Oil, February, 2012.
2 Spears & Associates, Markets & Markets.
About Flotek Industries, Inc.
Flotek is a global developer and distributor of a portfolio of innovative oilfield technologies, including specialty chemicals and down-hole drilling and production equipment. It serves major and independent companies in the domestic and international oilfield service industry. Flotek Industries, Inc. is a publicly traded company headquartered in Houston, Texas, and its common shares are traded on the New York Stock Exchange under the ticker symbol "FTK."
For additional information, please visit Flotek's web site at www.flotekind.com.
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 expects, anticipates, intends, plans, believes, seeks, estimates 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. Factors that could cause or contribute to such differences in results and outcomes include, but are not limited to, demand for oil and natural gas drilling services in the areas and markets in which the Company operates, competition, obsolescence of products and services, the Company's ability to obtain financing to support its operations, environmental and other casualty risks, and the impact of government regulation.
Further information about the risks and uncertainties that may impact the Company are set forth in the Company's most recent filings on Form 10-K (including without limitation in the "Risk Factors" Section), 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.
SOURCE Flotek Industries, Inc.