Flowco (FLOC) Registration Filing summary

Company overview and business model

• Leading provider of production optimization, artificial lift, and methane abatement solutions for the oil and natural gas industry, with two main segments: Production Solutions and Natural Gas Technologies.

• Core technologies include high pressure gas lift (HPGL), conventional gas lift, plunger lift, vapor recovery units (VRU), and proprietary digital solutions for real-time monitoring.

• Operates a fleet of over 4,300 active systems and serves every major onshore oil and gas region in the U.S., with a customer base including supermajors and large independents.

• Vertically integrated manufacturing model enhances reliability, reduces supply chain risk, and supports innovation.

• Formed through a 2024 business combination of Estis, Flowco Production Solutions, and Flogistix, creating a pure-play market leader.

Financial performance and metrics

• Pro forma revenue for the nine months ended September 30, 2024: $547.3 million; for fiscal year 2023: $665.3 million.

• Adjusted EBITDA for the nine months ended September 30, 2024: $149.9 million; for fiscal year 2023: $122.1 million.

• Net income for the nine months ended September 30, 2024: $57.9 million; for fiscal year 2023: $58.1 million.

• As of September 30, 2024: $23.1 million in cash, $575.5 million in long-term debt, and $1.6 billion in total assets.

• Revenue is diversified, with the top ten customers representing 51% of 2023 pro forma revenue; largest customer accounted for 8%.

Use of proceeds and capital allocation

• Estimated net proceeds of $358.1 million (or $413.3 million if underwriters exercise their option) based on a $22.00 per share IPO price.

• Proceeds will be used to acquire LLC Interests from Flowco LLC; Flowco LLC will use funds to redeem $18.7 million from certain non-affiliate holders and repay indebtedness under the Credit Agreement.

• Capital allocation strategy prioritizes organic growth, disciplined M&A, and dividends, with a planned dividend program post-IPO.