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

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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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