FLOTEK PROVIDES UPDATE ON PROPOSED AMENDMENTS TO EPA FLARE MONITORING REGULATIONS

Core Viewpoint - The proposed amendments by the EPA regarding flare monitoring regulations are expected to positively impact the industry, particularly for companies like Flotek Industries, which offers advanced monitoring solutions [4][11]. Regulatory Changes - The EPA's proposed amendments include technical changes to the vent gas NHV continuous monitoring requirements for flaring operations, expanding some exemptions while limiting the number of flares exempted from compliance testing [1][4]. - The amendments are open for public comment for 45 days following their publication in the Federal Register [1]. Company Performance - Flotek's Data Analytics segment reported a 30% increase in revenues from the second quarter of 2024, attributed to new flare monitoring services utilizing the JP3 VeraCal analyzer [5]. - The company has invested in analytical assets to address industry resource limitations and simplify compliance processes [5]. Technology and Innovation - Flotek's JP3 system was designated as an approved measurement technology for initial flare regulations, marking it as the first approved alternative method for NHV measurement in flare gases [8]. - The company focuses on delivering innovative solutions that leverage near real-time data to maximize customer returns, supported by a robust intellectual property portfolio of over 170 patents [9]. Strategic Outlook - The CEO of Flotek expressed confidence in the growth potential of the Data Analytics segment, anticipating significant growth in 2025 due to the demand for compliance with updated flare monitoring regulations [11]. - The company's strategy emphasizes the convergence of chemistry and real-time data solutions to provide differentiated technologies [11].