Flotek Says Expecting Delay in Sales ~$2.5M in Q3 Related to Severe Flooding in Colorado
Flotek Industries, Inc. (NYSE: FTK) ("Flotek" or the "Company") today announced updates regarding activity in the Denver-Julesburg Basin ("D-J Basin") and announced its presentation this week at the Independent Petroleum Association of America's Oil and Gas Investment Symposium in San Francisco.
Impact of September Floods on D-J Basin Activity
September's record rainfall in Colorado had a significant impact on oilfield activity in the Denver-Julesburg Basin as severe flooding along the Front Range, especially in the Big Thompson Canyon and South Platte River, resulted in substantial production shut-ins and a significant decline in regional oilfield activity for the second-half of September.
As noted by leading operators and service companies in the D-J Basin, drilling and completion activity was halted in the region around September 15 and was slow to resume through the end of September. While activity has begun to resume, infrastructure damage and personnel displacement will continue to have an impact on the return to normal operations in the region in the coming weeks.
After examining activity curtailment and delivery delays resulting from flooding, Flotek believes it will experience a transient delay in revenue of approximately $2.5 million in the third quarter. It is too early to determine any lingering revenue impact from infrastructure and personnel issues, although Flotek is beginning to experience more normal procurement patterns from our clients.
Flotek experienced no loss of equipment or inventory as a result of the flooding.
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