Flotek Industries, Inc.

Greetings, and welcome to Flowtech Industries' first quarter 2022 earnings conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow management's prepared remarks. If anyone should require operator assistance during the conference, please press star, then zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Bernie Coulson. Senior Vice President, Corporate Development and Sustainability for Flowtech. Thank you. You may begin.

Thank you, and good morning, everyone. We appreciate your participation. Joining me today are John Gibson, Chairman, Chief Executive Officer and President, Ryan Ezell, Chief Operating Officer, Michael Borton, Chief Financial Officer, James Silas, Senior Vice President of Research and Innovation, and Nick Bigney, General Counsel and Chief Compliance Officer. On today's call, we will first provide prepared remarks concerning our business and results for the quarter. Following that, we will answer any questions you have. We have now released our earnings announcement for our first quarter 2022 results, which is available on our website. Today's call is being webcast and a replay will also be available on our website. Please note that any comments we make on today's call regarding projections or our expectations for future events are forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control. These risks and uncertainties can cause actual results to differ materially from our current expectations. We advise listeners to review our earnings release and the risk factors discussed in our filings with the SEC. Also, please refer to our reconciliations provided in our earnings press release as management may discuss non-GAAP metrics on this call. I will now turn it over to John Gibson. John? Well, thank you and good morning, everyone.

And thank you for joining our discussion of our first quarter results for 2022. Now, first, let me welcome Bernie Coulson to the leadership team and introduce him to you. You just heard him speak. I'm extremely excited that Bernie's joined Flowtech to lead our corporate development, sustainability, and investor relations strategies. He's recognized as an experienced investment and ESG leader in the energy sector with more than two decades of experience in investment banks, institutional asset managers, and a renewable energy holding company. Bernie was most recently with Delaware Ivy Investments, where he was a portfolio manager, energy team lead, and helped develop the firm's first ESG-labeled fund focused on the energy transition. Bernie's exceptionally bright and a big thinker, and I believe he's going to help drive Flowtech's corporate strategy. I'm extremely excited to have him here on the Flowtech team. Now, before we cover the quarterly results, Let me say we're thrilled that we convened our call today having closed the expanded non-exclusive 10-year contract with Profract to deliver our full suite of downhole chemistries to a significant portion of its hydraulic fracturing fleets in North America. This agreement is truly transformational for Flowtech and for the industry. Through this agreement, E&Ps now have a comprehensive, vertically integrated completion solution that reduces emissions and delivers green chemistries, thereby protecting air, water, land, and people. Over the next decade, we anticipate this agreement should create backlog of more than $2 billion in revenue for Flowtech, including anticipated revenues well in excess of $200 million in 2023. We're very excited that we just completed the first full month of our partnership with Profract, which began on April 1st. We're off to a very strong start, which Ryan will discuss in greater detail in his remarks. We are on target to achieve positive adjusted EBITDA, excluding convertible notes, amortization before the end of the fourth quarter 2022. With the initiation of our contract with Profract comes changes to our board of directors. As you will see in our proxy statement, Matt Wilk stands for election to the Board concurrent with the 2022 Annual General Meeting on June 9th. As Chairman of the Board of Directors for ProFract Holding Corp., Matt has been instrumental in pioneering our shared vision of complementary offerings that enable E&Ps to more sustainably develop natural resources while reducing total cost of ownership. Also of note, ProFract recently completed its IPO. raising $288 million. We ask for your support in electing him to the board, as he is a key strategic collaborator in driving the adoption of sustainable chemistry solutions throughout the industry. He is a champion of efficiency, one of the best I've met. I should note that with our contract, Profract has the option to appoint four of our seven directors. Any additional director nominations will occur after our annual meeting. Until such time, the board will continue with six directors. Concurrent with this nomination, Ted Brown and Paul Hobby will not stand for re-election to the board. Both Ted and Paul have been outstanding directors, guiding the company through our transformation. They've been personally supportive to me and have brought tremendous value to shaping our strategy, and I'm extremely grateful for their time on the board. I will miss both Ted and Paul. As we discussed on last quarter's earnings call just six weeks ago, Flowtech is now a very different company from the past, and now that the expanded, non-exclusive, 10-year contract with ProPrac is closed, I repeat, closed, we are focused on looking forward rather than backward. In line with this, and as part of our future financial reporting beginning in the second quarter, we will report on a consolidated basis rather than by segment in light of the scale of our chemistries technology business. So today, after my remarks, you will hear from Ryan Azell in his official capacity as COO, followed by Mike Borton, who will provide brief comments, followed by my closing remarks. As indicated on our last quarter call, I was concerned about the challenging markets at the beginning of the year where BRAC Fleet activity levels dropped in January. However, activity slowly recovered in February and leveled off in March. As a result, March turned out to be the strongest month since before the pandemic. In the end, our quarterly revenue improved 6% sequentially and our adjusted EBITDA also improved by 5% over Q4 2021. Now with that, I'd like to turn the call over to Ryan. Ryan.