Flowco Holdings Inc. Reports First Quarter 2025 Results

Flowco Holdings Inc. (NYSE:FLOC) ("Flowco" or the "Company"), a provider of production optimization, artificial lift and methane abatement solutions for the oil and natural gas industry, today announced financial results for the first quarter ended March 31, 2025.

Where presented, the financial results for 2024 represent periods (i) during which Flowco's operating subsidiary, Flowco MergeCo LLC ("Flowco LLC"), was a privately-owned limited liability company and (ii) prior to the completion of Flowco's initial public offering in January 2025. Historical financial information for the periods ended in 2024 reflects information for Flowco LLC, and historical financial information presented prior to June 20, 2024 reflects only the historical financial information of Estis Compression LLC ("Estis") as the accounting predecessor prior to the business combination of Estis, Flowco Production Solutions, L.L.C. ("FPS") and Flogistix, LP ("Flogistix") and parent entities formed in connection with such business combination (the "2024 Business Combination").

Key First Quarter 2025 Highlights

• Revenues of $192.4 million, generating net income of $27.0 million and Adjusted Net Income¹ of $32.8 million
• Adjusted EBITDA¹ of $74.9 million
• Adjusted EBITDA Margin¹ of 38.9%
• In May 2025, Flowco's Board of Directors declared a quarterly cash dividend of $0.08 per share
• Robust balance sheet with $547.4 million of availability under our revolving credit facility as of May 9, 2025

Financial Summary

Joe Bob Edwards, President and CEO, commented, "Flowco delivered solid first-quarter results, underscoring the resilience of our business and the strength of both our Production Solutions and Natural Gas Technologies operating segments. We believe our differentiated portfolio of products, technology and services continues to position us as a partner of choice for customers, while supporting our financial performance through dynamic markets.

Over the past several weeks, the U.S. upstream outlook has been challenged by evolving tariff policies, OPEC+ commentary suggesting accelerated production, and broader economic uncertainty. At current commodity price levels, many of our customers have announced plans to modestly reduce capital spending, but most have reiterated or only slightly reduced their production expectations. Importantly, operators have also emphasized their commitment to generating cash flow through the cycle. Flowco's strategic focus on production optimization and our integral role in a critical path of our customers' operations uniquely positions us to deliver value, as we work alongside operators to drive greater performance through this dynamic market backdrop.

We remain confident in our ability to generate growth year over year, even in a flat production environment. We continue to invest growth capital in our High Pressure Gas Lift and Vapor Recovery offerings, which are experiencing strong demand driven by broader customer adoption. Under the current tariff environment, we believe our High Pressure Gas Lift solution offers a cost-effective alternative to certain other competing technologies that may be negatively impacted by tariffs. Thanks to our vertically integrated manufacturing footprint and domestic supply chain, we believe our exposure to similar tariff-related cost pressures remains limited.

Although we expect ongoing market volatility, our strategic positioning, innovative solutions and capital discipline give us confidence in our ability to navigate the current uncertainties and evolving market landscape while delivering attractive returns on capital employed."

Segment Information

We report our results in two segments, Production Solutions and Natural Gas Technologies. Production Solutions includes the rental, sale and service associated with high pressure gas lift, conventional gas lift and plunger lift, including a range of digital solutions and other production related technologies. Natural Gas Technologies includes the design, manufacture, rental and sale of vapor recovery and natural gas systems. Corporate costs not directly related to either segment are categorized separately.

Segment Financial Information

Production Solutions

First quarter 2025 revenue for the Production Solutions segment increased 2.3% from the fourth quarter of 2024, and Adjusted Segment EBITDA increased 1.3% quarter over quarter for the same periods. The increase in revenue and Adjusted Segment EBITDA resulted from higher operating leverage. Adjusted Segment EBITDA Margin decreased 44 basis points due to credited expenses incurred in the fourth quarter related to the establishment of our corporate function.

Natural Gas Technologies

First quarter 2025 revenue for the Natural Gas Technologies segment increased 5.1% from the fourth quarter of 2024, primarily due to a shift in timing of sales within Natural Gas systems. Adjusted Segment EBITDA increased 3.1% quarter over quarter for the same periods, with Adjusted Segment EBITDA Margins down 73 basis points due to unfavorable revenue mix.

Corporate

Corporate Adjusted Segment EBITDA for the quarter ended March 31, 2025 was ($4.4) million, compared to ($3.9) million corporate Adjusted Segment EBITDA in the quarter ended December 31, 2024. The decrease in corporate Adjusted Segment EBITDA was primarily associated with the continued buildout of our public corporate functions.

Balance Sheet & Liquidity

As of May 9, 2025, the Company had outstanding borrowings under its senior secured revolving credit facility ("Credit Agreement") of $175.6 million and, with a current borrowing base of $723.0 million, had availability under the Credit Agreement of $547.4 million.

Dividend Declaration

On May 2, 2025, Flowco announced that its Board of Directors had declared a quarterly cash dividend of $0.08 per share of Class A common stock payable on May 28, 2025 to Class A common stockholders of record as of the close of business on May 14, 2025. Flowco MergeCo LLC, the Company's operating subsidiary, will make a corresponding distribution of $0.08 per unit to holders of its common units.

Conference Call and Webcast Information

Flowco will host a conference call on Tuesday, May 13, 2025, at 8:00 am. Eastern Time to discuss first quarter 2025 results. The conference call can be accessed live over the phone by dialing 1-877-704-4453 (for the U.S.) or 1-201-389-0920 (for International). A telephonic replay of the conference call will be available two hours after the call and can be accessed by dialing 1-844-512-2921 (for the U.S.) or 1-412-317-6671 (for International). The passcode for the call and replay is 13752793. A live webcast of the conference call will also be available under the Investor Relations section of Flowco's website at ir.flowco-inc.com.

About Flowco

Flowco is a leading provider of production optimization, artificial lift and methane abatement solutions for the oil and natural gas industry. The company's products and services include a full range of equipment and technology solutions that enable oil and natural gas producers to efficiently and cost-effectively maximize the profitability and economic lifespan of their assets.

Forward-Looking Statements

The information in this press release includes forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts contained in this press release may be forward-looking statements. These statements generally relate to future events or our future financial or operating performance, and include, but are not limited to: statements regarding guidance or estimates related to the Company's results of operations or financial condition; industry trends, customer demand and industry outlook, and effects on Flowco's operations; Flowco's strategies and plans, including matters relating to the Company growth, capital expenditures, dividend policies, and leverage profile. When used in this press release, words such as "expect," "project," "estimate," "believe," "anticipate," "intend," "plan," "seek," "forecast," "target," "predict," "may," "should," "would," "could," and "will," the negative of these terms and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Forward-looking statements are based on management's current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although Flowco believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. These risks and uncertainties are described further in Item 1A under the heading "Risk Factors" and elsewhere in our annual report on Form 10-K for the year ended December 31, 2024 filed with the Securities and Exchange Commission. Flowco undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.

Non-GAAP Financial Measures

In addition to our results determined in accordance with generally accepted accounting principles in the United States ("GAAP"), the Company uses non-GAAP financial measures, such as Adjusted Net Income, EBITDA and Adjusted EBITDA, as well as Adjusted Segment EBITDA and Adjusted Segment EBITDA Margin, in this press release to supplement financial information presented in accordance with GAAP. We believe that excluding certain items from our GAAP results provides management additional insight on the consolidated financial performance from period to period to project our future consolidated financial performance as forecasts are developed at a level of detail different from that used to prepare GAAP-based financial measures. Moreover, we believe these non-GAAP financial measures provide our management and investors with useful information to help them evaluate our operating results by facilitating an enhanced understanding of our operating performance and enabling them to make more meaningful period to period comparisons. There are limitations to the use of the non-GAAP financial measures presented in this press release. For example, our non-GAAP financial measures may not be comparable to similarly titled measures of other companies. Other companies, including companies in our industry, may calculate non-GAAP financial measures differently than we do, limiting the usefulness of those measures for comparative purposes. Non-GAAP measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. The Company urges investors to review the reconciliation and not to rely on any single financial measure to evaluate our business.

Adjusted Net Income

Adjusted Net Income is a non-GAAP measure that we define as net income (loss) adjusted to eliminate the impact of (i) transaction-related expenses, (ii) share-based compensation, (iii) loss on the sale of equipment, (iv) loss on debt payments and (v) changes to the value of our inventory. Adjusted Net Income is a supplemental non-GAAP financial measure used by management, our stockholders and others to provide visibility on the profitability and financial strength of the Company by excluding certain expenses related to non-recurring Company transactions.

Reconciliation from net income to Adjusted Net Income is set forth as follows:

Adjusted EBITDA and Adjusted EBITDA margin

We define EBITDA as net income, adjusted to exclude interest expense, provision for income taxes and depreciation and amortization. We define Adjusted EBITDA as EBITDA adjusted to exclude (i) share-based compensation expense, (ii) business combination-related expenses and (iii) other non-cash and non-recurring expenses.

EBITDA and Adjusted EBITDA are key performance indicators we use in evaluating our operating performance and in making financial, operating and planning decisions. In particular, the exclusion of certain expenses in calculating EBITDA and Adjusted EBITDA provides additional visibility on operating performance across reporting periods by removing the effect of non-cash and/or non-recurring expenses. Accordingly, we believe that this measure provides useful information to our stockholders and others in understanding and evaluating our operating results in the same manner as our management and board of directors.

Reconciliation from net income to EBITDA and Adjusted EBITDA are set forth as follows:

Adjusted Segment EBITDA and Adjusted Segment EBITDA Margin

In addition to business segment profit or loss, our management also evaluates Adjusted Segment EBITDA, which is presented on a business unit level for purposes of allocating resources and evaluating operating and financial performance. As discussed above, the Company operates and manages its business units in the following two operating and reporting segments:

• Production Solutions: relates to rentals, sales and services related to high pressure gas lift, conventional gas lift and plunger lift; including other digital solutions and methane abatement technologies.
• Natural Gas Technologies: relates to the design and manufacturing for the rental, sales and servicing of vapor recovery and natural gas systems.

We define Adjusted Segment EBITDA as segment net income, as adjusted in the same manner as defined for EBITDA and Adjusted EBITDA above. Reconciliation from segment net income, which includes direct segment costs but excludes corporate costs not directly related to either segment, to Adjusted Segment EBITDA is set forth as follows:

View source version on businesswire.com: https://www.businesswire.com/news/home/20250512875328/en/

Investor Contact:

Andrew Leonpacher

[email protected]



Media Contact:

Niki Sikinger

[email protected]