X axis : Stocks Price Correlation Coefficient Y axis : Quantity of stocks May-2016 1,000 Day Parameter 4,338 NYSE Stocks Price Analysis This stock mode of correlation coefficient is 0.3 In other words, the correlation coefficient of the other stocks
Matt Marietta is a great asset to flotek, he can really help this management team go to the next level
The upside potential for FTK just got a whole lot more interesting thanks to an enticing performance % (quarter|performance % (q)|performance (quarter)} of 0.56%. Im not sure about you guys but awesomeSTO-CKS has provided me with some pretty good trade ideas. I messed up executing some of them but thats on me.
Good luck to all
Flotek: Review Concluded Previously Acknowledged FracMax Software Errors Likely Resulted from Accidental Inclusion of Test Code by Third-Party Developer >FTK Wednesday 02/08/2017 05:27 PM ET - Dow Jones News
Dow Jones News has only provided a headline at this time.
Flotek Industries: Independent Director Review of Company's FracMax Software, Efficacy of Complex-nano Fluid Didn't Find Intentional Misconduct or Fraud >FTK Wednesday 02/08/2017 05:23 PM ET - Dow Jones News
so they are selling off thier down hole tool division times to buy or run?
What happens tomorrow
Refuting a claim by FourWorld Capital Management LLC that it conducts all its testing in a lab, Flotek Industries Ltd., told Rigzone that the oilfield is Flotek’s biggest lab for testing its Complex nanofluid Technology (CnF).
The company told Rigzone that it takes learnings from the lab and applies them to real-world situations for customers in basins across the world, from West Texas to Alberta and the Middle East.
Earlier this month, FourWorld Capital questioned the results of a study conducted by MHA Petroleum Consultants’ on Flotek’s behalf.
FourWorld Capital Concludes DJ Basin Study Incomplete FourWorld Capital said that MHA’s study of CnF’s effectiveness in DJ Basin wells is based on incomplete data. This is due to the omission of OilPerm FMM-1 and FDP-S1007-11, the trade names of two products containing CnF that were used in MHA’s study to identify CnF wells, John Addis, portfolio manager for FourWorld Capital, told Rigzone. Even with the proper trade names, Addis said the MHA study, unlike the FourWorld study, failed to adequately consider well known factors that influence oil production, like well length, operator and location.
These two trade names, and a partial trade name, accounted for 22 percent of the 604 wells in FourWorld’s data set. FourWorld believes the error rate in MHA’s study would be very close to 22 percent. OilPerm FMM-1, a Halliburton product, accounted for the largest number of misclassified wells, 97 out of 132. FDP-S1007-11 is also Halliburton product. Flotek provided this trade name to MHA for studies in Texas that were conducted six months later. MHA’s studies state that they relied on Flotek to provide them with trade names which were used to identify wells that used CnF.
“When adjusted for operator, location, and well length, we conclude the estimated impact of CnF on production can’t be distinguished from zero relative to non-CnF wells,” Addis stated. “In the studies commissioned by Flotek, MHA lists these factors as important for measuring production but ignores them in their analysis.”
FourWorld Capital conducted two types of independent studies, Addis said. The first study was a granular comparative well output study comparing well production from CnF versus non-CnF wells, or a deeper version of what MHA did. This study considered 604 wells in the DJ Basin in the same areas as the 698 well study conducted by MHA.
The second study FourWorld Capital conducted used advanced statistical models. For this study, FourWorld Capital and RK Trading LLC reviewed MHA’s study not only of the DJ Basin, but the Permian Basin as well. The firm concluded that the use of CnF resulted in no production up-lift in both the DJ Basin and the Permian. FourWorld Capital also worked with consulting firm Sylvania LLC on the report.
“In our view, MHA’s studies in Texas were just as flawed as the DJ Basin study,” Addis said. “They failed to consider things like the operator, which goes to well design, well length and location. We think the Texas studies are equally invalid for that reason.”
After reviewing the results, statistically, it’s highly unlikely that CnF made a difference in production, Dick Jefferis, partner at RK Trading and the author of the statistical report, said to Rigzone. In his view, the amount of oil produced by wells treated with CnF versus non-CnF wells appears totally random.
“Any perceived outperformance goes away when you look at the influence of CnF by operator, and simply correct for the fact that long wells tend to produce less oil per foot of completion than short wells in the same formation,” Jefferis said. “Separating wells treated with CnF into wells drilled in high production areas versus wells drilled outside of these areas produces a similar result.”
FourWorld Capital’s examination of FracFocus water volumes show CnF customers outside the top 3 account for 19 percent of CnF usage in 2016 versus 61 percent in 2014. This directly contradicts statements from Flotek about the penetration and resilience of the product.
“Since CnF is used in proportion to water, this really cuts through the noise and drives the point home that their customer base has shrunk massively,” Addis said.
FourWorld Capital Findings Generally Contradict Reliable Industry Sources After reviewing FourWorld Capital’s report, independent financial services firm Stephens Inc. generally concluded that the findings contradict reliable industry sources and their public literature regarding CnF’s efficacy.
In a Dec. 19 research note, Stephens’ analysts noted that FourWorld Capital holds a short position in Flotek, and could profit if Flotek’s stock price declines. Analysts said they believed “excessive detail” may cloud the simplicity of the report’s fundamental concerns.
Stephens’ interpretation of the report was that FourWorld Capital considered FMM-1 and FMM-2 similar enough to be treated as the same for its study. But Stephens’ analysts say the two Halliburton products are unique from one another. The analysts said they did not run their own lab analysis of the products in question, but pointed to information available on Halliburton’s website that spells out the products’ material differences. Case studies from Halliburton supporting the efficacy of its products controlled field studies are also available online.
One of the consulting firms that FourWorld Capital worked with on the report is two years old. On its website, the firm only has the names of two employees, no names of clients, and only four hits in the OnePetro/Society of Petroleum Engineers’ (SPE) database of industry case studies. By contrast, well-known industry consulting firm Ely & Associates went on record in October 2015 to endorse CnF and is engaging in an existing technical partnership with Flotek. Ely & Associates is a 25-year old firm with 85 in-house engineers, 624 named clients, and more than 220 hits in the OnePetro/SPE database.
In regards to statements on Flotek’s customer growth, Stephens’ analysts note that a considerable amount of merger and acquisition activity has occurred among users of CnF, particularly in the Permian Basin. Bankruptcies and directives from the executive level to operations to cut all costs means that fewer wells have been completed. Batch completions have resulted in lumpy customer orders, and product names may have evolved and changed due to shifting relations between operators and hydraulic fracturing companies.
“We remain confident in the growth prospects for Flotek’s CnF technologies as well as other chemical segments, but do fully acknowledge lingering credibility issues and customer concentration risk,” Stephens analysts concluded.
CnF Offers Pivot for Flotek Business The origin of CnF technology stems from using d-limonene – a solvent extracted from oranges – for cleaning oil off a concrete garage floor. The inventors then incorporated the technology with other additives to create a nano-droplet that could work downhole in a well, President and CEO John Chisholm said to Rigzone in an interview.
Flotek acquired the patent for CnF technology in 2000. Over time, the technology has evolved for use in unconventional natural gas, then unconventional oil. Its primary use is in hydraulic fracturing stimulation and recompletions of those stimulations where it might not have been used on the first completion.
“It’s used everywhere almost without exception that you may have a hydraulic fracturing technology, from the Middle East to Poland, Argentina, Canada, to everywhere else in the continental United States. Soon, the technology will be used in China,” Chisholm said.
Historically, the company has not disclosed specific names of clients who have used the technology. In the third quarter of this year, more gallons of CnF had been used than in the entirety of 2014. A third of the CnF used was involved in completions, Chisholm said.
“It’s a market penetration story,” Chisholm told Rigzone regarding Flotek.
Not only is CnF itself transformational, but the company’s business model for selling CnF as well. Historically, companies like Flotek would sell to a distributor like Halliburton. But Flotek came up with the idea of selling its products through an online store. Chisholm credits sales through this store for helping the company’s profitability during the oil price downturn.
“We have been able to penetrate the market because we had greater control of the pricing of our technology to the ultimate end user,” Chisholm said.
CnF’s efficiency is not the first time that Flotek’s technology has been questioned. The company also developed FracMAX, an app that allowed companies to see how CnF could enhance their production. But an algorithm flaw misallocated production on wells in Texas, Chisholm said. In November 2015, Australia-based Bronte Capital questioned production data that Flotek had used in marketing materials for its FracMAX software.
Chisholm denied Bronte’s allegations that Flotek modified production data to encourage people to buy the technology. He said the company’s activities have continued to grow because their technology works. He added that the operators they work conduct their own analysis for making decisions. The app is intended to bring visibility to chemistry, not for companies to rely solely on for analysis.
The company’s product line including drilling and production technologies. But the company pivoted towards CnF because of the efficiency is could bring to exploration and production. It also provided the company a way to differentiate itself compared with its commodity-driven downhole tool and production technologies.
The company’s outlook would be different if 85 percent, not 15 percent, of the oil and gas industry used its CnF product. But Flotek is cautiously optimistic in its 2017 outlook, Chisholm said, and thinks it will be a better year than 2016.
Fourworld Capital Management, LLC had also published a thesis "to zero" for CC in 2015 where the stock price is now far higher at around $22. According to online reports, they are a registered investment advisory firm located in New York, New York. The firm manages 3 accounts totaling an estimated $26,250,320 in assets under management. Its operations include 4 employees and is categorized as providing investment advisory services to 10 clients.
Will you please bring Flotek a new management team that will defend the company against bogus, for profit, short reports, please!?! A management that wont pre-release results when they do not even know what the results actually are!!! We know that the oil industry is picking up as a whole, what we would like is either a new management team or at least you bring them a pair of balls and a backbone!!! Thanks Santa!!
Flotek Industries: Received Letter from MHA Petroleum Consultants Responding to FourWorld Capital Management
Short report went out almost 2 weeks ago, and is full of holes, what does John Chisholm, the chairman and ceo do??? Absolutely nothing to protect his company or shareholders!!! Mister Chisholm leaves it up to the analyst who cover Flotek to change his dirty diapers time and time again!