Could the US Rig Count Affect Flotek Industries in 4Q16?

Flotek Industries’ US revenue

In the past year, Flotek Industries’ (FTK) revenue share from the United States has fallen. In 3Q16, it fell to 79%, compared with 84% in 3Q15. During the same period, FTK’s aggregate revenue fell 16%.

FTK makes up only 0.06% of the iShares Russell 2000 Growth ETF (IWO). The energy sector makes up 1.4% of IWO. A higher US rig count could improve revenue for Weatherford International (WFT), FMC Technologies (FTI), and Superior Energy Services (SPN).Could the US Rig Count Affect Flotek Industries in 4Q16?

US rig count

Between 3Q15 and 3Q16, the US rig count fell 38%. Between its multiyear high in September 2014 and December 16, it fell 67%.

From September 30 until the week ended December 16, the US rig count gained ~20% to close at 637. A higher US rig count could boost FTK’s revenue and earnings in 4Q16. Next, we’ll discuss FTK’s revenue from international operations and the international rig count.