Flowco (FLOC) investor relations material

Deal rationale and strategic fit

• Adds continuous rod and progressing cavity pump (PCP) technologies, extending artificial lift into later-life well applications.

• Lifting Solutions’ vertically integrated R&D, engineering, manufacturing and field-service model supports proprietary product development and customer service.

• Builds on the Valiant acquisition, with cross-selling potential and access to new geographies outside the U.S.

• Adds scaled Canadian operations and an established international platform for growth in Canada, the Middle East and other markets.

Financial terms and conditions

• Closed October 2, 2026, for approximately US$113 million in cash, subject to purchase agreement adjustments; cash-free, debt-free, funded with ABL borrowings.

• Purchase multiple of ~5.0x 2027E Adjusted EBITDA; expected to accrete to earnings and free cash flow per share.

• 2027E Adjusted EBITDA of ~US$23 million, with unlevered free cash flow equal to ~50% of Adjusted EBITDA.

• Sellers eligible for up to C$10 million in contingent consideration tied to 2027 performance, payable in early 2028.

• Post-acquisition net leverage expected near 1x EBITDA.

Synergies and expected cost savings

• Cross-selling complementary products, technical expertise and customer relationships across both businesses’ geographic footprints.

• Canadian service network can support sales, installation and maintenance of additional artificial-lift products.

• Paired technologies can match lift solutions to well requirements and expand addressable markets.