ROBUST REVENUE GROWTH HIGHLIGHTS FLOTEK'S 2022 FINANCIAL RESULTS.

HOUSTON: Flotek Industries, Inc. ("Flotek" or the "Company") (NYSE: FTK) today announced results for the fourth quarter and full-year ended December 31, 2022.

Full year 2022 revenue of $136.1 million increased 215% compared to 2021

Amended ProFrac Supply Agreement provides incremental service fee on majority of products delivered under the agreement

Adjusted EBITDA as a percentage of revenue improved for the sixth consecutive quarter

Year-end cash and cash equivalents of $12.3 million

Strong growth continued at JP3 with revenue up 20% sequentially

New senior management team in place

Harsha V. Agadi, Interim Chief Executive Officer of Flotek stated, "In the fourth quarter, we achieved another quarter of increased volumes, strong revenue growth, and improving operational performance while managing our liquidity to facilitate continued growth. For the sixth consecutive quarter, we posted improvement in Adjusted EBITDA as a percentage of revenue, and Adjusted EBITDA in absolute terms improved from a loss of $8.4 million in the third quarter to a loss of $5.1 million in the fourth quarter. This provides further evidence that the strategy is working and we are progressing toward our goal of positive Adjusted EBITDA. The market for our products remains robust, our execution continues to be outstanding, and achieving positive Adjusted EBITDA remains our primary focus."

Leadership Transition

Flotek separated the Chief Executive Officer and Chairman roles

David Nierenberg was appointed Chairman of the Board of Directors.

Harsha V. Agadi was appointed Interim Chief Executive Officer.

Dr. Ryan Ezell was promoted to President.

Bond Clement was appointed to the role of Chief Financial Officer in the fourth quarter of 2022.

Operational Highlights

Increased the average number of ProFrac fleets serviced from 16 to 21 with growth expected to continue through the first half of 2023.

Realized continued revenue growth in the transactional chemistry business in the quarter and gained market share for the sixth quarter in a row.

Achieved approximately 11% market share of the active US frac fleets by the end of the fourth quarter. Well positioned with our workforce, infrastructure, and processes to capture additional market share.

Fourth Quarter and Full Year 2022 Financial Results

Total Revenues: Flotek generated fourth quarter 2022 total revenue of $48.2 million, up 5.7% from $45.6 million in the third quarter of 2022 and up 297% compared to the fourth quarter...