/C O R R E C T I O N -- Flotek Industries, Inc./

               /C O R R E C T I O N -- Flotek Industries, Inc./

PR Newswire

HOUSTON, Nov. 7, 2012

In the news release, Flotek Industries, Inc. Announces Third Quarter 2012
Results, Provides Financial and Operational Update, Reaffirms Conference Call
Details, issued 07-Nov-2012 by Flotek Industries, Inc. over PR Newswire, the
first paragraph of the Conference Call Details section should read "Flotek
will host a conference call on Thursday, November 8, 2012 at 7:30 a.m. Central
Standard Time to discuss its operating results for the three months ended
September 30, 2012." rather than "Flotek will host a conference call on
Thursday, September 8, 2012 at 7:30 a.m. Central Daylight Time to discuss its
operating results for the three months ended June 30, 2012." as incorrectly
transmitted by PR Newswire. The complete, corrected release follows:

  Flotek Industries, Inc. Announces Third Quarter 2012 Results, Provides
  Financial and Operational Update, Reaffirms Conference Call Details

HOUSTON, Nov. 7, 2012 /PRNewswire/ -- Flotek Industries, Inc. (NYSE: FTK)
("Flotek" or the "Company") today announced results for the three months
ending September 30, 2012.

As reported on Form 10-Q filed with the U.S. Securities and Exchange
Commission, Flotek reported that revenue for the three months ended September
30, 2012 was $78.6 million, an increase of $3.5 million, or 4.7%, compared to
$75.1 million for the same period in 2011. Revenue increased in the Chemical
and Drilling segments but declined slightly in the Artificial Lift segment.

For the three months ended September 30, 2012, the Company reported operating
income per common share (fully diluted) of $0.28, compared to operating income
per common share (fully diluted) of $0.31 in the same quarter of 2011.
Operating income per common share, a non-GAAP measure of earnings, excludes
certain extraordinary items as well as interest and income tax impacts on the
income statement. A reconciliation of this calculation to GAAP earnings can be
found at the conclusion of this press release.

For the three months ended September 30, 2012, the Company reported income
attributable to common stockholders of $9.8 million, or $0.19 per common share
(fully diluted), compared to net income of $17.9 million, or $0.35 per common
share (fully diluted) for the same period in 2011.

"In a quarter where many of our oilfield brethren struggled to maintain
momentum, Flotek continued to be an industry leader in both revenue and margin
growth," said John Chisholm, Flotek Chairman, President and Chief Executive
Officer. "While the operating environment for all oilfield services companies
was challenging in the third quarter, Flotek's focus on continuing to
penetrate new markets, offer exceptional service to our existing customers and
our emphasis on research and innovative technologies to respond to customer
challenges served us very well in the quarter. The continued tenacity of the
Flotek team has positioned Flotek to post one of the best years in the history
of the Company."

"Even in a more challenging operating environment, we continue to see
meaningful opportunities for growth with our industry-leading specialty
chemistries as well as our best-in-class Teledrift measurement while drilling
technology and performance-leading Cavo Drilling Motors," added Chisholm. "The
relative strength of our specialty oilfield technologies can be seen in our
continued margin strength as well as our expanding customer list across all
three operating segments. We will continue to focus on our solid relative
margins through continued innovations, concentrate on precise execution and
efficiencies and continued growth in market share across our segments. In
fact, we believe a soft market actually provides Flotek – with its innovative
suite of oilfield technologies – opportunities to reach new customers that
provide significant potential for new business today that will grow well into
the future."

A complete review and discussion of the Company's year-end financial position
can be found in the Company's quarterly report on Form 10-Q filed with the
U.S. Securities and Exchange Commission today.

Financial Update

As of September 30, 2012, the Company's cash balance was approximately $21.9
million compared to $25.5 million on September 30, 2011. As of November 6,
2012, Flotek's cash balance was approximately $24.5 million.

Outstanding receivables, net, at September 30, 2012, were $44.0 million,
compared to $46.5 million as of September 30, 2011.

Flotek continues to consider strategic options regarding its convertible
notes. The Company currently has a total of approximately $55.5 million of
convertible notes outstanding that can be put to the Company in February,
2013. The Company also has a right to call the notes, at par, at any time
after February 13, 2013. With continued improvement in the Company's
operations, balance sheet and cash flows, Flotek believes it has a number of
options available to address any credit obligations due in the coming year.

Flotek's $35 million revolving credit facility through PNC Bank remains
undrawn and available. The Company is in advanced discussions with our banking
partner to expand the facility and extend the maturity to facilitate the
Company's future financing needs. While no new facility has been closed, the
Company is confident it will extend and expand its borrowing relationship
within the next several weeks.

"With the consistent, considerable improvement in Flotek's financial position
over the past several years, we believe the Company is well positioned to both
address its obligations and continue its growth largely with internally
generated capital," added Chisholm. "We believe our financial obligations over
the next twelve months can be more than adequately satisfied by cash generated
by operations and availability under our existing credit relationships. We
have positioned Flotek to take advantage of future growth opportunities while,
at the same time, assuring future growth benefits the shareholders of our
Company." 

Operational Update

While overall oilfield activity moderated in the third quarter, a result of
uncertainties regarding commodities prices and economic growth resulting in
less robust drilling and exploration activity, Flotek's business continued to
post steady growth. Although growth in drilling activity has moderated, Flotek
remains optimistic regarding opportunities, believing opportunities for growth
exist in all three business segments.

Chemicals revenue for the third quarter and year to date periods ended
September 30, 2012, increased $0.6 million, or 1.3%, and $38.1 million, or
38.2%, respectively, relative to comparable 2011 periods. The increase in
third quarter 2012 revenue was primarily due to a net increase in service and
product revenue of $0.6 million attributable to increased liquid and cement
handling activity and milestone construction completions as compared to the
third quarter of 2011. During the first nine months of 2012, increased
activity from key existing customers and cross marketing sales initiatives
resulted in incremental product revenue of $36.7 million, while increased
liquid and cement handling activity and milestone construction completions
resulted in an increase in service revenue of $1.4 million compared to the
first nine months of 2011. The Bakken, Niobrara and Eagle Ford shale plays in
particular, were positive contributors to the year to date period over period
increase.

In general, revenue growth was the result of the Company's development,
strategic adaptation and customization of proprietary natural gas effective
Complex nano-Fluid™ additives to oil effective Complex nano-Fluid™ additives
for new and existing customers', increased market demand and incremental
domestic and international market penetration. Increasing industry
recognition of proven production efficiencies and environmental benefits
derived from use of Flotek's new and existing products increased demand for
complex nano-fluid products in both domestic and international markets.
Incremental period over period revenue from key customers alone totaled $19.8
million for the nine months ended September 30, 2012 over the same period in
2011.

Chemicals' gross margin for the quarter and year to date periods ended
September 30, 2012 increased $3.4 million, or 19.4%, and $22.2million, or
55.8%, respectively. The increase in gross margin for both the quarter and
year to date periods is attributable tonegotiated raw material price
concessions with existing vendors in addition to exploration of raw material
sourcing alternatives. Cost containment also contributed to the improvement in
the gross margin. Cost of goods sold decreased 6.2% and 3.7% for the quarter
and year to date periods ended September 30, 2012, respectively, compared to
the same periods in 2011, while direct product costs, in particular decreased
by 0.9% and 1.4%, respectively. Cost containment was facilitated by operating
efficiencies realized from the expansion of Chemicals' manufacturing facility
and on-going best practice process improvement initiatives aimed at reducing
labor and overhead costs.

Of special note, Flotek's entrance into the Enhanced Oil Recovery, or EOR,
market continues to make progress. Flotek's newly developed Complex
nano-Fluid™ based CO[2] foam diversion product, StimOil FD-1, has been
successfully applied to arrest premature CO[2 ]breakthrough in a West Texas
CO[2] flood for Chaparral Energy. As a result, sweep efficiency in the pilot
area of the field is improving and oil recovery is steadily increasing.In
the first trial, the use of Complex nano-Fluid™ resulted in a production
increase of 14,000 barrels of oil in the first three months of use.

Laboratory work and computer simulations are underway to apply the
breakthrough technology inadditional fieldsfor new operators in the US and
Canada.

In addition, the Company recently introduced CnF 2.0, the next generation of
Complex nano-Fluid™ chemistries. In early tests, the more concentrated form of
Complex nano-Fluid™ allows an operator to experience the productive benefits
of the chemistry and, at the same time, reduce consumables such as water,
proppant and horsepower by as much as 20%.

"Our chemicals division continues its solid performance, gaining new customers
and posting solid margins," added Chisholm. "We continue to expand durable
relationships with key customers and gain the confidence of new customers in
new basins. Moreover, the combination of new applications such as EOR with
game-changing products such as CnF 2.0 provide a plethora of opportunities for
future growth. While these applications are in the nascent stage, early
results are promising and market potential is significant."

Drilling revenue for the quarter and year to date periods ended September 30,
2012 increased $3.5 million, or 12.8%, and $15.1 million, or 20.4%,
respectively, relative to the same periods in 2011. The favorable variance
resulted from domestic and international market share growth and market
penetration with both new and existing customers, change in customers' product
mix demands, increased oil rig count, favorable period over period crude oil
commodity prices, new product development, specialized customer demand for new
and existing product adaptation, continued cross marketing sales efforts,
sales force revitalization, and competitive pricing relief.

Drilling gross margin for the quarter and year to date periods ended September
30, 2012 increased by $0.2 million, or 1.5%, and $3.9 million, or 12.7%,
respectively over comparable periods of 2011 primarily due to increased
product and service prices as compared to 2011 tempered by competitive price
pressures and increased domestic equipment costs which, upon aggregation,
result in a decrease in gross margin as a percentage of revenue for the
quarter and year to date periods ended September 30, 2012 of 4.1% and 2.6%,
respectively.

Flotek's Drilling segment continues to book solid revenues and grow its
customer base. In the third quarter, sequential revenues were flat compared
with a decline in the rig count of nearly 7%. The Company continues to gain
market share with a focus on increasing tool density per rig. We continue to
see meaningful opportunities for growth in our three key regions: the Permian
Basin, the Mid-Continent and in South Texas, especially the Eagle Ford shale.
We continue to increase our market penetration as at least one Flotek drilling
tool can be found on nearly a third of all rigs in the United States.

Teledrift continues to provide leadership in our downhole tools group.
Teledrift rental revenue increased approximately 6.9% for the year-to-date
period ended September 30, 2012 as compared to the year to date period ended
September 30, 2011. Teledrift's remote MWD data monitoring system, allowing
engineers anywhere in the world with data access to view Teledrift results on
remote computers or smart phones, has been a driving force supporting an
increase in Teledrift business activity.

Artificial Lift revenue for the three months ended September 30, 2012 totaled
$4.0 million, a slight decrease of $0.5 million, or 9.9%, compared to $4.5
million for the three months ended September 30, 2011 due to decreased
customer natural gas drilling and workover activity. Revenue for the year to
date period ended September 30, 2012, totaled $9.1 million, a decrease of $1.0
million, or 10.1%, to $10.1 million for the same period in 2011 primarily due
to softened unit installation activity resulting from lower natural gas
drilling activity, driven by low natural gas prices, tempered by increased
incremental revenue from international customers.

Artificial Lift gross margin decreased by $0.4 million or 18.6% to $1.8
million from $2.2 million and increased by $0.1 million or 4.0% to $3.7
million for the quarter and year to date periods ended September 30, 2012,
respectively, as compared to the same periods in 2011. The decreased 2012
third quarter gross margin is attributed to pricing pressure due to lower
natural gas drilling activity. The increase in 2012 gross margin year-to date
is primarily due to greater than average margins realized on international
product sales and strategic price initiatives.

"The dedication, determination and effort of the entire Flotek team has
produced solid results for the first nine months of 2012," concluded Chisholm.
"We continue to be laser-focused on innovative ways to improve performance,
accelerate profitable growth and position Flotek for durable growth across
cycles. While our team is pleased with the quarter, we are far more focused on
the challenge of continuing to grow Flotek, providing industry-leading returns
for our shareholders and making a difference for all of our stakeholders."

Early Fourth Quarter Metrics

While Flotek does not provide formal guidance, a few words about the early
results in the fourth quarter do provide an indication of the dynamic nature
of the current oilfield market.

Flotek believes revenue in the month of October will exceed $29 million, the
second best month in Flotek's history. Revenue in all three operating segments
trended higher and pricing remains steady. Highlights include meaningful
growth in chemical sales to key customers compared to monthly third quarter
levels as well as solid performance from Teledrift.

"While we remain vigilant in our focus for signs of cyclical challenges and
the potential impact of the Thanksgiving and Christmas holidays, we believe
our early read of October suggests our concentration on exceptional service to
existing customers combined with penetration of new markets with
technology-driven solutions to oilfield challenges continues to pay
dividends," said Chisholm. "A solid October makes the Flotek team work that
much harder to assure solid results in the fourth quarter. While we know the
holidays can have a moderating impact on business, we are excited about what's
ahead for the balance of the year."

Conference Call Details

Flotek will host a conference call on Thursday, November 8, 2012 at 7:30 a.m.
Central Standard Time to discuss its operating results for the three months
ended September 30, 2012.

To participate in the call, participants should dial 1-800-616-4018
approximately 5 minutes prior to the start of the call. The call can also be
accessed from Flotek's website at www.flotekind.com.

About Flotek Industries, Inc.

Flotek is a global developer and distributor of innovative specialty chemicals
and down-hole drilling and production equipment. Flotek manages automated bulk
material handling, loading and blending facilities. It serves major and
independent companies in the domestic and international oilfield service
industry. Flotek Industries, Inc. is a publicly traded company headquartered
in Houston, Texas, and its common shares are traded on the New York Stock
Exchange under the ticker symbol "FTK."

For additional information, please visit Flotek's web site at
www.flotekind.com.

Forward-Looking Statements:

Certain statements set forth in this Press Release constitute forward-looking
statements (within the meaning of Section 27A of the Securities Act of 1933
and Section 21E of the Securities Exchange Act of 1934) regarding Flotek
Industries, Inc.'s 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 filing
on Form 10-K (including without limitation in the "Risk Factors" Section), 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.



GAAP Earnings Per Common Share and Share Reconciliation
                            Three Months Ended      Nine Months Ended
                            September 30,           September 30,
                            2012       2011          2012          2011
Net income attributable to
common stockholders -       $ 9,806   $ 17,917      $ 26,590      $ 25,549
Basic
Impact of assumed
conversions:
Interest on convertible    414        867           -             -
notes
Dividends on preferred     -          -             -             140
stock
Net income attributable to
common stockholders -       $ 10,220   $ 18,784      $ 26,590      $ 25,689
Diluted
Weighted average common    48,384     47,178        48,054        43,201
shares outstanding - Basic
Assumed conversions:
Incremental common shares  1,493      1,727         1,617         2,388
from warrants
Incremental common shares  1,003      743           986           743
from stock options
Incremental common shares
from convertible preferred
stock before
conversion                -          -             -             581
Incremental common shares
from restricted stock       158        -             80            -
units
Incremental common shares
from convertible senior     2,440      4,681         -             -
notes
Weighted average common
shares outstanding -        53,478     54,329        50,737        46,913
Diluted
Basic earnings per common  $  0.20  $  0.38     $  0.55     $   0.59
share
Diluted earnings per       $  0.19  $  0.35     $  0.52     $   0.55
common share
Reconciliation of Diluted Net Earnings Per Common Share to Diluted Operating
Income Per Common Share
Diluted Earnings Per Common $  0.19  $  0.35     $  0.52     $   0.55
Share
Loss on extinguishment of   -          -             0.12          0.07
debt
Change in fair value of     -          (0.15)        (0.05)        (0.40)
warrant liability
Interest expense            0.03       0.06          0.12          0.27
Other income (expense), net -          -             0.01          -
Income tax expense          0.06       0.05          0.20          0.12
Accrued dividends and
accretion of discount on    -          -             -             0.10
preferred stock
                            $  0.28  $  0.31     $  0.92     $   0.71
Amounts taken from income   Three Months Ended      Nine Months Ended
statement for the           September 30,           September 30,
comparable periods
                            2012       2011          2012          2011
Loss on extinguishment of   $      $     -  $  6,386    $   3,225
debt                        -
Change in fair value of     $      $ (7,802)     $ (2,649)    $ (18,609)
warrant liability           -
Interest expense            $ 1,830   $  3,287     $  6,245    $  12,633
Other income (expense), net $    17 $   (23)   $    367   $   
                                                                   (43)
Income tax expense          $ 2,940   $  2,726     $  9,991     $   5,672
Accrued dividends and       $    
accretion of discount on    -         $     -  $      - $   4,868
preferred stock

SOURCE Flotek Industries, Inc.

Website: http://www.flotekind.com
Contact: Investor Relations, +1-713-849-9911, IR@flotekind.com