Flotek Industries, Inc. FTK
("Flotek" or the "Company") today announced updates regarding activity in the
Denver-Julesburg Basin ("D-J Basin") and announced its presentation this week
at the Independent Petroleum Association of America's Oil and Gas Investment
Symposium in San Francisco.
Impact of September Floods on D-J Basin Activity
September's record rainfall in Colorado had a significant impact on oilfield
activity in the Denver-Julesburg Basin as severe flooding along the Front
Range, especially in the Big Thompson Canyon and South Platte River, resulted
in substantial production shut-ins and a significant decline in regional
oilfield activity for the second-half of September.
As noted by leading operators and service companies in the D-J Basin, drilling
and completion activity was halted in the region around September 15 and was
slow to resume through the end of September. While activity has begun to
resume, infrastructure damage and personnel displacement will continue to have
an impact on the return to normal operations in the region in the coming
weeks.
After examining activity curtailment and delivery delays resulting from
flooding, Flotek believes it will experience a transient delay in revenue of
approximately $2.5 million in the third quarter. It is too early to determine
any lingering revenue impact from infrastructure and personnel issues,
although Flotek is beginning to experience more normal procurement patterns
from our clients.
Flotek experienced no loss of equipment or inventory as a result of the
flooding.
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