Flotek’s operating cash flows
Flotek’s free cash flow
In 1Q17, FTK’s capital expenditure or capex fell 51% in 1Q17 over 1Q16. Despite its lower capex, this negative CFO led to negative FCF (free cash flow) in 1Q17. In 1Q17, FTK’s FCF was -$4.4 million, compared with -$10.3 million in 1Q16. FCF’s capex has been negative for five out of the past 13 quarters.
FTK’s 2017 capex plan
Flotek plans to spend between $10 million and $14 million on capex in 2017. This would be a reduction from the planned capex range of $15 million–$20 million it disclosed earlier in its 2016 Form 10-K. FTK’s capex totaled $14 million in 2Q16.
FTK’s capex is subject to a maximum limit of $20 million in 2017, according to the credit facility agreement with PNC Bank, FTK’s primary lender.
Notably, Flotek Industries makes up 0.13% of the iShares Micro-Cap ETF (IWC). IWC has risen 4% so far this, compared with the 5% fall in FTK’s stock. SPX-INDEX has risen 8%.
You can learn more about the oilfield equipment and services industry in Market Realist’s The Oilfield Equipment and Services Industry: A Primer.