FTK - Flotek Industries (FTK) - Flotek Expanding JP3 Product Line

Flotek recently released press releases announcing a new application for its near infrared real-time analyzers and a new generation of international certified online analyzers. As a reminder, Flotek acquired JP3, a Data Analytics Company that analyzes the content of hydrocarbon streams, in May of 2020. We view the recent announcements as a positive sign that the operations of JP3 are expanding. We look for top-line sales of JP3 to grow at a rate near 20% the next several years with improved energy industry financials.On October 15, JP3 announced the release of AIDA, a new patent-pending application for its infrared, real-time analyzers. AIDA is short for Automated Interface Detection Algorithm. The application identifies products such as refined fuels, crude and natural gas liquids on a real-time basis without calibration. AIDA is compatible with other JP3 applications that measure hydrocarbon composition, vapor pressure, BTU and other components.On October 27, JP3 announced the release of a new generation of online analyzers. The analyzers are able to withstand exposure to extreme outdoor environments, a key to on-site applications. Most other analyzer products require samples to be brought to a lab for analysis. JP3 uses its technology to help North American oil and gas companies optimize operations and has recently received commitments from Asia and Middle East energy companies.Rating remains Outperform with a $2.50 Price Target. We are encouraged by recent news releases and believe the company is on track to begin reporting higher sales growth and earnings which should lead to a higher stock price. Read More >>