Flowco (FLOC) Piper Sandler 25th Annual Energy Conference summary

Company background and leadership

• Flowco was formed by merging two portfolio companies with complementary expertise in artificial lift and production optimization, closing the merger in June 2024.

• Leadership has deep experience in energy investing and oilfield services, with over 10 years focused on production themes.

• Over 100 employee owners and more than 40 millionaires were created at the IPO.

• The company boasts top expertise in gas compression and downhole artificial lift technologies.

High-pressure gas lift (HPGL) technology and market

• HPGL, pioneered by Flowco, uses compressed natural gas to lift fluids in shale wells, offering a cost-effective alternative to ESPs.

• HPGL is now the fastest-growing product line, with over 60 customers, up from one at inception.

• Customer adoption is strong post-consolidation, with no customers reverting to ESPs after trying HPGL.

• HPGL addresses shale well challenges: rapid decline, high sand, and rising gas-to-oil ratios.

• Only about 15% of the $1.5 billion addressable HPGL market has been penetrated, leaving significant growth potential.

Business model, economics, and customer relationships

• HPGL systems are exclusively offered as rentals, not for sale, ensuring operational control and high uptime.

• The company achieves over 20% ROCE, among the best in the industry, and continues to invest in growth capital.

• Seamless transition is offered between HPGL, conventional gas lift, and plunger lift, supporting the full well lifecycle.

• Service quality, innovation, and customer support are key differentiators, with patents providing some protection.

• Mechanical uptime for HPGL averages 99.6%, compared to 92% for ESPs, driving higher NPV for operators.