SOURCE: Flotek Industries, Inc.

January 09, 2007 09:51 ET

Flotek Industries, Inc. Completes Acquisition of Triumph Drilling Tools With Expanded Senior Credit Facility

HOUSTON, TX -- (MARKET WIRE) -- January 9, 2007 --Flotek Industries, Inc. (AMEX: FTK) announced the completion of its acquisition of substantially all the assets of Triumph Drilling Tools for $31 million cash.

Triumph is a leading regional provider of down-hole rental equipment to the oil and gas industry. Triumph maintains an extensive inventory of drilling tools for lease or sublease to customers in Texas, New Mexico, Louisiana, Oklahoma and Arkansas. Triumph's rental products include stabilizers, drill collars, drilling jars, roller reamer and other specialized drilling tools. Triumph also provides bottom hole assembly design, inspection services and other related technical services. Triumph services numerous drilling contractors, directional drilling companies, major and independent operators. Audited financial statements of Triumph and unaudited proforma financial statements will be filed with the SEC within 75 days.

The acquisition was financed with an amended $56 million senior credit facility from Wells Fargo Commercial Banking in Houston. The senior credit facility is comprised of $36 million in term loans and a $20 million revolving credit facility. Initial borrowings under this facility were used to finance the acquisition of Triumph and repay Flotek's existing senior credit facility. In addition to significantly increasing the Company's working capital availability, Flotek's senior borrowing rates were reduced approximately 150 basis points as a result of the new financing.

Jerry D. Dumas, Flotek's Chairman and Chief Executive Officer, stated, "I am excited to start the year with the addition of Triumph Drilling Tools to our Flotek family. We are eager to begin integrating the Triumph assets and personnel. We have brought together an outstanding group of drilling tool operations and services over the last two years. Our focus in 2007 is geographic and product expansion coupled with increased tool utilization."

Flotek will present at the Pritchard Capital Partners, LLC Energy Conference on Tuesday, January 9, 2007 at 1:30 p.m. PST at the Omni San Francisco. A copy of the materials will be posted on Flotek's web site at http://www.flotekind.com following the presentation.

Flotek manufactures and markets innovative specialty chemicals, downhole drilling and production equipment, and manages automated bulk material handling, loading and blending facilities. It serves major and independent companies in the domestic and international oilfield service industry.

Forward-Looking Statements:

This Press Release contains forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934) regarding Flotek Industries, Inc. 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 10KSB (including without limitation in the "Risk Factors" Section) and Form 10-QSB, 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.

For more information about Flotek Industries, Inc. and/or this presentation, please contact:

Contact Information

  • CONTACT:
    Flotek Industries, Inc.
    Rosalie Melia
    Corporate Secretary
    713.849.9911