Will the US Rig Count Affect Flotek Industries in 3Q16?



Flotek Industries’ US revenue

In the past year, Flotek Industries’ (FTK) revenue share from the United States has fallen. In 2Q16, FTK’s US revenue share fell to 75% compared to 84% in 2Q15. During the same period, FTK’s aggregate revenue fell by 17%. In comparison, RPC’s (RES) 2Q16 revenue fell by 52% compared to 2Q15.

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US rig count

In the past year through 2Q16, the US rig count fell by 51%. The US rig count reached its multiyear high in September 2014. From that point, it fell by 76% until August 5, 2016.

From June 30 until the week ended August 5, the US rig count rose by 10% to close at 464. A higher rig count could increase FTK’s revenue and earnings in 3Q16.

Next, we’ll discuss the international rig count and FTK’s revenue from its international operations.


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