HOUSTON, Feb. 6, 2013 - Flotek Industries, Inc. ("Flotek" or the "Company") today announced that it has terminated the Share Lending Agreement (the "Agreement") between the Company and J.P. Morgan Markets Limited ("J.P. Morgan," formerly known as Bear, Stearns International Limited). The Agreement, entered into in February, 2008, was entered into in conjunction with the offering of $115 million in Convertible Notes by the Company.
As a result, J.P. Morgan has returned an additional 2,439,558 shares of common stock to the Flotek treasury which have been removed from the public float. In total, since the Company began reducing the amount of convertible notes outstanding in 2010, J.P. Morgan has returned all 3.8 million shares lent under the Agreement. All shares will remain in Flotek's treasury and will be removed from the shares outstanding. Due to the nature of the lending agreement, the shares were not used in the calculation of Flotek's earnings per share.
The return of the borrowed shares is the result of Flotek's repurchase of approximately $50.3 million of its Convertible Notes previously announced on December 31, 2012.
"The termination of the Share Lending Agreement is another step in our journey to create straightforward, more transparent financial statements for Flotek," said John Chisholm, Flotek's Chairman, President and Chief Executive Officer. "Along with simplicity comes a better understanding of Flotek's financial picture which creates more confidence in our ability to generate value for all of our stakeholders."
About Flotek Industries, Inc.
Flotek is a global developer and distributor of a portfolio of innovative oilfield technologies, including specialty chemicals and down-hole drilling and production equipment. 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."
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 filings 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.