Flowco Sees 10 Percent Growth in Annual Revenue

Flowco Holdings Inc. has reported pro forma revenues of $733.3 million for 2024, up 10 percent compared to $665.3 million for 2023.

The company said revenues reached $186 million in the fourth quarter of 2024, while net income was $22.3 million. 2024 data represents Flowco MergeCo LLC, while pre-June 20, 2024 figures show Estis Compression LLC's performance, before the Estis Compression LLC, Flowco Production Solutions LLC (FPS), and Flogistix LP merger.

“2024 was a transformational year for Flowco. Our year-over-year revenue and EBITDA growth underscores our ability to grow in an industry where our customers are continuously focused on production and capital efficiency. Our top quartile EBITDA margins illustrate the differentiation of our products, equipment, and technology, which enable our customers to produce oil and natural gas more efficiently while reducing downtime. We are also differentiated by our vertically integrated manufacturing operations and a supply chain that is located solely in the United States, providing a competitive advantage amidst an uncertain geopolitical environment”, Joe Bob Edwards, President and CEO, said.

The Production Solutions segment reported a 1.5 percent increase in revenue for the fourth quarter of 2024 over the third quarter. Adjusted segment EBITDA also increased 5.2 percent from the previous quarter. The increases resulted from higher operating leverage combined with a slight shift in revenue mix between surface equipment and downhole solutions, Flowco said.

Revenue for the Natural Gas Technologies segment dropped 6.5 percent from the third quarter, mainly due to the completion of a large project in the natural gas systems unit. However, Adjusted Segment EBITDA increased by 4.5 percent quarter over quarter, with margins up 400 basis points thanks to strong vapor recovery performance, which offset the revenue decline from natural gas systems, the company said.

On January 15, 2025, Flowco completed an IPO of 20.47 million shares, including 2.67 million from underwriters' options. The company used $461.8 million in IPO proceeds to reduce borrowings from its revolving credit facility and invested significantly in surface equipment and vapor recovery rental fleets to meet growing customer demand, it said.

“In 2025, we plan to continue investing in our business while maintaining capital discipline and our focus on providing attractive returns on capital employed. With our strategic focus on production optimization, we are levered to resilient cash flows driven by our customers’ non-discretionary, production-oriented expenditures. Based on identified customer demand and a stable U.S. production outlook, we expect continued growth in 2025 as we deliver high-value outcomes to our growing customer base”, Edwards said.

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