HOUSTON, Oct. 1, 2013 /PRNewswire/ -- 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. "First and foremost, we join our clients and friends in expressing our concern and compassion for those directly impacted by this unfathomable natural disaster and those that continue to experience the lasting impacts of unprecedented flooding," said John Chisholm, Flotek's Chairman, President and Chief Executive Officer. "While the loss of revenue will have a modest, transient impact on our third quarter revenue, that is of little concern when compared to the challenges and hardships faced by our clients and their hard working associates in Colorado. We will do everything possible to assist in the recovery and restoration efforts and are focused on returning normalcy to the region with any help we can provide." Presentation at Independent Petroleum Association of America Oil & Gas Investment Symposium Flotek will make a presentation at the Independent Petroleum Association of America San Francisco Oil and Gas Investment Symposium on Wednesday, October 2, 2013. John Chisholm, Chairman, President and Chief Executive Officer of Flotek, will present to conference attendees beginning at 8:55am PDT. The presentation will be webcast live beginning at 8:55am PDT on Wednesday, October 2, 2013 and can be accessed from Flotek's website, www.flotekind.com. The presentation slides will be available on the Flotek website coincident with the conference presentation.