Flotek Industries, Inc.

Good morning, ladies and gentlemen, and welcome to the Flowtech second quarter 2026 earnings conference call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on August 5, 2026. And now I would like to turn the conference over to Mike Critelli. Please go ahead.

Thank you and good morning. We're thrilled to have you with us for FLOTEC's second quarter 2026 earnings conference call. Today I'm joined by Ryan Ezell, Chief Executive Officer, and Bond Clement, Chief Financial Officer. We'll begin with prepared remarks on our operations and financial performance, followed by Q&A. Yesterday, we released our second quarter results, updated full-year guidance, and an updated investor presentation, all available on our investor relations website. This call is being webcast with a replay available shortly afterward. Please note that today's comments may include forward-looking statements. These are subject to risks and uncertainties. that could cause actual results to differ materially from our projections. For a full discussion of risk factors, please review our earnings release and most recent SEC filings. Please also refer to the reconciliations in our earnings release and investor presentation for non-GAAP measures. With that, I will turn the call over to our CEO, Ryan Ezell.

Thank you, Mike, and good morning, everyone. We appreciate your interest in Flowtech. and your participation today as we review our second quarter of 2026 operational and financial results. In the second quarter, Flowtek continued its transformational growth storyline through the execution of its corporate strategy. Driven by the powerful convergence of innovative real-time data and chemistry solutions as shown on slide three, Flowtek has laid the foundation for a data-driven growth trajectory built on diverse recurring revenue High Margin Services, and proprietary technologies that create value for our customers and improve returns for our shareholders. The strategic transition of the company into a data-as-a-service business model continues to gain momentum while expanding the total addressable market for the company. As a result, Flowtech's data analytics segment grew exponentially while our differentiated chemistry segment outpaced the market in a challenging environment through an unwavering commitment to safety Service Quality, Innovation, and Total Value Creation. With that, I'd like to touch on some key highlights for the second quarter that Bond will discuss later in the call. Company total revenue approached $100 million, up 70% from the second quarter of 2025, and the strongest quarterly performance in the last 10 years. Data Analytics achieved its highest quarterly revenue in company history, shattering the first quarter of 2026 record by 85%. Chemistry technologies revenue increased 53% with international chemistry revenue reaching 10.6 million, representing 93% of full year 2025 international chemistry revenue of 11.4 million. Company gross profit climbed 65% versus the second quarter of 2025. It's impactful to note that data analytics accounted for 51% of company gross profit versus 26% in the prior year quarter, marking a major milestone in Flowtech's transformation as it became the largest contributing segment to gross profit. Total company adjusted EBITDA grew 109% year-over-year, totaling $16.8 million. On Monday, we also announced a 10-year, $400 million contract award to support PREPA's 400-megawatt Puerto Rico gas power utilities project referenced on slide 4. Finally, the company updated its 2026 guidance with the new midpoint being 45% and 49% increases versus 2025 actuals on revenue and EBITDA, respectively. This update builds upon a multi-year trend of revenue and profitability growth as the company executes on its strategic initiatives to provide long-term resiliency and profitability as shown on slide 6. Most importantly, these results were achieved with zero lost-time incidents in the field of operations. I want to thank all of our employees for their hard work and commitment to safety and service quality in achieving these outstanding results. Now, turning to the larger picture for the energy and infrastructure sector, we continue to believe that the ongoing situation in the Middle East will have impactful and potentially long-term implications on global supply and energy security that will demand action. The industry continues to exhibit a shift in supply-side dynamics that's recalibrating the risk profile of regional supply while fundamentally establishing a higher baseline for energy security. We expect increased investment in localized oil and gas developments, while geographies that do not possess resources look to rapidly diversify energy security exposure. All of these factors point towards a stronger commodity pricing environment for increased upstream activities. Layering in the expanding power demand driven by AI, data centers, and industrial reshoring, combined with the reliability issues of an aging transmission infrastructure, the expectations for tailwinds within the energy sector further strengthen. Our legacy pressure pumping customers continue to capitalize on the portfolio diversification opportunity provided by the demand for remote power generation. Flowtech is poised to support emerging customers with products and services that help protect their assets while optimizing their operational performance and fuel efficiency. With multi-year waiting lists for turbines and reciprocating engines, protecting these capital-intensive investments is critical, along with enabling reliability standards that exceed the greater than 99% uptime requirements. Transitioning from the macro view, let's dive into details, starting with slide eight. I want to spotlight the transformational growth in our data analytics segment. We saw total segment revenues up 223% year-over-year, and second quarter 2026 service revenues exceeding total segment revenues from the year-ago quarter. This strong growth is powered by our flagship upstream applications, Power Services and Digital Valuation, both of which are generating significant contracted wins and a robust recurring revenue backlog shown on slide 9. Adonis Wenzar, Arisa, PREPA 10-year 400-megawatt utilities power support contract generating over $400 million per year backlogged through 2036. By the first quarter of 2027, Flowtech expects to support over 5 gigawatts of power through measurement or control by a proprietary Powertech platform. This further validates the demand and scalability of our innovative technologies in the behind-the-meter power space. We're also actively engaged in a potential Phase II extension of the Montana Power Services Contract. Finally, we had the successful utilization of our state-of-the-art SmartSkid to optimize gas quality with real-time blending of field gas and CNG for a major IOC. This is the first application of its kind. The momentum gained from these wins has expanded our expected contracted backlog to over $500 million. Our service has led this growth, further reinforcing our shift towards high-margin recurring revenue streams. The Powertek platform has evolved from a novel analytical approach into a transformative solution for the energy and infrastructure sector. What began as advanced analytics has grown into a comprehensive end-to-end fuel management platform redefining performance standards and operations within the sector as shown on slide 10. Our expanding portfolio of patents and field-proven use cases position Flowtech as a leader across the natural gas value chain. Looking at slide 11, and when considering the velocity of our measurement, we deliver unmatched real-time fuel monitoring, conditioning, blending, and engine control to optimize performance and safety for behind-the-meter distributed power operations. The success of Flotek's power services applications is expanding rapidly as we expect to have proprietary real-time analyzers of more than 50% of the currently active North American EFRAC and natural gas powered fleets by the year end. Additionally, on August 3rd of 2026, Flotek announced its second contract within the utilities infrastructure sector seen on slide four. Leveraging our patented Powertek platform, Flowtech entered into a 10-year agreement to support natural gas-fired grid enhancement initiatives for the Puerto Rico Electric Power Association, which is the electric utility for the Commonwealth of Puerto Rico. Under the agreement, Flowtech expects to generate a revenue backlog of approximately $400 million through the rental of gas-fired power generation equipment, together with the deployment of the company's proprietary smart conditioning and distribution systems. FloTech has partnered with Power Expectations, which leads the group executing the Emergency Temporary Power Generation Project. The initiative is expected to deploy 400 megawatts of natural gas-fired power generation capacity to address Puerto Rico's ongoing energy crisis. FloTech is providing its proprietary PowerTech platform, including 400 megawatts of primary power generation capacity and six pairs of smart skids with advanced conditioning, Real-time analytics and gas distribution systems working alongside experienced local partners for on-ground execution and project management. Support equipment is expected to begin deployment in the fourth quarter of 2026 with the initial power generation equipment and conditioning and distribution skids expected by the end of the first quarter of 2027. Now, let's transition to slide 13, where we'll dive into our second upstream application Digital Valuation. This groundbreaking use case sets a new standard in the oil and gas industry, delivering unprecedented transparency and minimizing enterprise risk for producing wells like never before through real-time digital valuation. We believe the expected speed, accuracy, durability, and qualification under the rigorous measurement standards outlined in GPA will provide a significant advantage in discussions with prospective customers as we aggressively expand its manufacturing and field deployment. In March of 2026, the XSPECT Analyzer was named Product of the Year at the 2026 Analyzer Technology Conference, further exemplifying its differentiating capabilities. In the first quarter of 2026, we ended the quarter with 57 digital evaluation measurement devices deployed, or contracted for delivery. And that number has grown 56% to 89 as of the end of the second quarter of 2026. The execution of our transformational strategy to grow the data analytics segment through upstream applications is gaining traction. But what is most important is what it means for our stakeholders and our investors. First, our DASH-driven strategy ensures predictable recurring revenue and cash flow. delivering stability and long-term value. Secondly, our proprietary data technologies and superior measurement accuracy enable velocity and decision control that establish a high barrier to entry, secure client loyalty, and support our value-based service model. And third, long-term, high-margin subscriptions position Flowtek for sustained growth and margin expansion, driving significant shareholder value over time. Now, lastly, Our chemistry technology segment continues to deliver robust performance driven by the differentiation of our prescriptive chemistry management services and our expanding international presence. Slide 16 highlights the resilient performance of our chemistry segment, which delivered a 53% increase in total revenue for the second quarter of 2026 compared to the second quarter of 2025, despite a 5% decline in the average North American frack fleet count over the same period, according to primary vision data. This was the strongest quarter of chemistry sales since 2017 and exceeded our expectations as our work in the Middle East pulled forward, driving strong performance in the month of June. International revenue totaled $10.6 million, up 172%, from a year ago, with the company expecting continued growth in the international chemistry sales in the second half of 2026. It's evident that our chemistry team has executed our strategy flawlessly. As we move into the second half of 2026, opportunities leveraging the convergence of prescriptive chemistry management and data services move to the forefront through high-margin services that improve operator ROI. These advanced DAS-driven services include smart command units, real-time flowback monitoring, and implementation of prescriptive geological targeting. Looking ahead, I am more confident than ever in Flotek's momentum and our ability to drive sustained, profitable growth as we execute our transformative corporate strategy. We are firmly positioning Flotek as a high-growth technology leader in the energy and infrastructure sectors accelerating innovation through the powerful integration of real-time data analytics and advanced chemistry solutions that are tailored precisely to our customers' evolving needs. Now, I'll turn the call over to Bond to provide key financial highlights.