HOUSTON, May 9, 2012 /PRNewswire/ -- Flotek Industries, Inc. ("Flotek" or the "Company") (NYSE: FTK) announced today that the Company has entered into a multi-year bulk chemical supply agreement (the "Agreement") with Pioneer Natural Resources Pumping Services, LLC ("Pioneer").
The Agreement provides that Pioneer will purchase 80% of certain blended chemistries from Flotek for a period of three years with an option to extend the Agreement beyond the initial term. Chemicals covered by the Agreement include Flotek's patented Complex Nanofluid Chemistries as well as certain friction reducers, cross-linkers, scale inhibitors and other products.
"We are honored that Pioneer has chosen Flotek as a preferred partner to supply our world-class completion chemistries," said John Chisholm, Flotek's Chairman, President and Chief Executive Officer. "As a leader in the development of unconventional resource plays, we believe our partnership with Pioneer not only provides a tangible economic benefit to our shareholders, it more importantly demonstrates Flotek's leadership as a preferred provider of advanced completion solutions to leaders in unconventional exploration and production."
Over the past several months, Pioneer and Flotek have worked together to expand their existing relationship leading to this formal supply Agreement to meet the growing completion chemical needs of Pioneer. While economic terms will not be disclosed, the Agreement provides a framework for preferential pricing for Pioneer while enhancing Flotek's margin potential through a pricing schematic related to raw material prices and purchase volumes.
"Pioneer is pleased to welcome Flotek to its family of partners as we work to build a vertically integrated company and accelerate development of our significant resource base," said Kyle Zemlak, President of Pioneer Natural Resources Pumping Services, LLC. "Flotek's chemicals, including patented Complex Nano Fluid® chemistries and their technical expertise have enhanced our completion results. We look forward to a long and mutually rewarding partnership."
The initial term of the contract will run through April, 2015.
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.