Flowco (FLOC) Registration Filing summary

Company overview and business model

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

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

• Revenue is generated throughout the long producing lives of oil and gas wells, with a fleet of over 4,300 active systems and a diversified customer base including supermajors and large independents.

• Vertically integrated business model with domestic manufacturing, reducing supply chain risk and improving margins.

• Recent business combination in June 2024 united three brands (Estis, Flowco Production Solutions, Flogistix) to create a market leader in the sector.

Financial performance and metrics

• For the nine months ended September 30, 2024, pro forma revenue was $547.3 million, with Production Solutions contributing 60% and Natural Gas Technologies 40%.

• Adjusted EBITDA for the nine months ended September 30, 2024 was $149.9 million, up from $88.0 million in the prior year period.

• Net income for the nine months ended September 30, 2024 was $57.9 million, compared to $40.0 million for the same period in 2023.

• As of September 30, 2024, cash and cash equivalents were $23.1 million, with $575.5 million in long-term debt and $916.3 million in total equity.

• Capital expenditures for the nine months ended September 30, 2024 were $61.6 million, primarily for fleet growth.

Use of proceeds and capital allocation

• Net proceeds from the IPO will be used to acquire LLC Interests, repay indebtedness under the Credit Agreement, redeem certain LLC interests from non-affiliate holders, and for general corporate purposes.

• The company intends to initiate a dividend program upon going public, subject to available funds and future earnings.

• Capital allocation strategy includes organic growth, disciplined M&A, and returning cash to investors while maintaining low leverage.