Spotlight on: Ryan Ezell, CEO, Flotek Industries
March 2025 — Ryan Ezell, the CEO of Flotek Industries, provided to Invest: a comprehensive understanding of the ways in which Flotek has integrated data analytics and AI technology into their chemistry technology solutions in order to foster their own profitability, while also contributing to the nation’s presence as a global leader in oil and gas.
Could you describe a few of the main highlights and achievements earned by Flotek Industries over the past year?
Flotek has recently undergone a significant turnaround and rebuilding phase. In 2023, the company achieved positive revenue growth for the first time in years, and 2024 saw another year of revenue expansion, with a nearly 1,200% increase in profitability. Our stock share performance was up almost 300% throughout 2024. The business expanded into Latin America and the Middle East, and we saw the evolution of our company’s long-term strategies take hold. We’ve always been focused on chemistry as a common value creation platform, but people are finally starting to understand the convergence of our innovative chemical business with our high tech data analytic services. The implications include applications to innovations such as infrared technology and thermal lasers, while simultaneously determining the importance of this collaboration within the chemistry sector. We are now experiencing a shift from capital sales to a “data-as-a-service” model, increasing public sector engagement. This shift has served to align our company’s strategy with national energy policy shifts, particularly under Secretary of Energy Chris Wright.
How is the innovation of AI technology offering opportunities for growth within Flotek in terms of data analytics?
The “data-as-a-service” business that we picked up through the acquisition of JP3 has grown over 200%, with a 70% service revenue model. We are now looking at three to five years of recurring contracts, including Liberty and other major industry players.
While others did not initially understand why an oilfield chemistry company would be buying a real-time data company, we are seeing increased adoption of AI-driven algorithms for real-time oilfield data analysis. These AI models can now prescribe and develop solutions directly in the field, enhancing efficiency. U.S. oil production efficiency improved by 12% with AI-driven chemistry solutions. R&D costs reduced from $12.2 million to $1.2 million, while conducting 20% more testing. We expect continued advancement in chemometric modeling for real-time gas monitoring in power generation and distribution, with a key focus on end-of-life energy solutions, electrification, and natural gas refinement. The current technology measures gas quality in pipelines every five seconds, improving transparency and efficiency.
What trends are you observing as the U.S. continues to move forward with energy transitions, and how are you planning on staying on top of these changes?
Not only is this an exciting time to be in the energy sector, but this is also an exciting time to be in Houston. Houston and Texas remain at the forefront of energy and technology innovation. Looking at the richest areas where technological advancements will play out, they will all be in need of data acquisition upgrades along with quality of operation analytics. There is a global need for a cheaper form of gas, and there are major opportunities available in oil and gas infrastructure upgrades, LNG exports and alternative energy solutions. The U.S. has a global advantage in producing lower-cost natural gas. Expansion of LNG exports will improve energy transparency and environmental impact. All of our technologies represent lynch pins in the value chain of that production, and we anticipate the acquisition of more data processes in the U.S. We know that our chemistry can make the world better, and the question was how to provide transparency and, more importantly, how we can improve our environmental footprint while doing so.
Are there any impending regulations you are keeping an eye on as a result of the new administration?
It’s a unique balance. I don’t believe we will necessarily drill more wells in the U.S., but I anticipate reduced bureaucratic red tape, along with lower energy-related taxes and restrictions. We also expect the removal of moratoriums on LNG plants, which will boost U.S. exports. The industry is poised to benefit on the global stage as policies shift toward pro-energy initiatives. It’s imperative to recognize that waste exists in every sector, including energy, and this needs to be addressed.
What advantage does your geographic location provide Flotek in terms of your growth strategy?
Flotek owns and develops most of its applied technology, testing it locally in Texas before scaling it globally. Texas is a hub for energy innovation and economic growth and serves as a testing ground for new technologies. The state’s economic strength is deeply tied to energy development.
What is your take on the region’s talent pool, and how are you aiding in workforce development?
Houston’s diversity and rapid population growth serve to create a strong talent pipeline. There is increasing competition for top-tier executives and technical talent, leading to higher salaries. Houston’s universities also provide a high-quality talent pool, with Flotek collaborating with UT Austin, University of Houston, Rice and Baylor.
What new innovations or product developments are underway for Flotek?
Flotek is at the intersection of chemistry, data analytics and energy digitalization. Transparency and AI-driven energy management will streamline global economic efficiency. We remain dedicatedly competitive, while managing key relationships by prioritizing people and innovation. Wind and solar alone won’t be sufficient sources of energy — future energy solutions need to be diversified.
The industry must embrace massive data growth and advanced AI-driven analytics, and collaboration across industries and technology sectors will be essential moving forward. The U.S. must remain a leader in technology, innovation and energy independence, and Flotek is poised to play an instrumental part in that leadership.
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