Flotek Industries Completes Initial Damage Assessment
Flotek Industries has completed its initial assessment of operations following Hurricane Ike and found no major structural damage to any facilities.
The CAVO facility in Houston, the primary assembly and repair unit for Flotek's mud motors and shock subs, lost all electric service for the past week. Field facilities have been able to continue limited operations related to sustaining assembly and repairs during this interim period. Full production will resume when electrical power is restored to the area.
The MTI Chemicals and Logistics facility in Raceland, Louisiana suffered minor damage during Hurricane Gustav including roofing, windows and overhead doors and experienced a one week shut down due to evacuation orders. Repairs have been inhibited since Hurricane Ike, and the facility has experienced a slowing in customer orders for services in affected areas.
These two facilities affected by the recent storms account for approximately 5% of Flotek's revenue year-to-date. Outside of the storm affected areas, all other Flotek facilities remain operational.
Jerry Dumas, Chairman and CEO, states, "Our hearts and prayers go out to those most affected by Hurricane Ike, and we wish everyone personally affected a safe and speedy recovery. While the hurricane activity has caused some short-term disruption to our operations, we do not expect these disruptions to be significant, nor continuing. We are dependent upon a return to normalcy of our customers in these affected areas, and are closely monitoring their activities. Flotek continues to show strong fundamental operating results and balance sheet, and we look forward to further reporting on our financial results after the fiscal quarter is completed."
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