Flotek Acquires Data and Analytics Company JP3
Flotek Industries announced that it has acquired 100% ownership of JP3 Measurement, a privately held data and analytics technology company. The transaction is valued at approximately $34.4 million.
JP3’s real-time data platforms combine the energy industry’s only field-deployable, inline optical analyzer with proprietary cloud visualization and analytics to increase processing efficiencies and valuation of natural gas, crude oil, and refined fuels. The transaction diversifies the Flotek’s business across all segments of the hydrocarbon value chain.
“This market has created such chaos and uncertainty that numerous growth opportunities—both organic and inorganic—have emerged,” said John W. Gibson Jr., president and chief executive officer of Flotek. “We have been disciplined in vetting those opportunities with a desire to reduce our dependence on rig count and the US unconventional market, while establishing an offering in the digital transformation market. With the acquisition of JP3, we are able to diversify our revenue stream and better serve our customers amidst accelerating digital transformation in the energy industry.”
“The energy industry is in a state of transformation,” said Matt Thomas, president of JP3, “and we look forward to helping companies capture cost savings and generate higher revenues through the application of our proprietary technology.”
Flotek said it expects the acquisition will open up significant downstream distribution opportunity, highlighted by the recently announced joint marketing agreement between JP3 and Phillips 66.
In conjunction with the transaction, Flotek will create a new Analysis and Data division, which will be led by Thomas, who will serve as Flotek executive vice president. Additionally, JP3’s Chief Data Officer James Dixson will serve as senior vice president of the Analysis and Data division. JP3 will continue to be headquartered in Austin, Texas.
“The automation of real-time analysis of flowing products brings tremendous value to the midstream energy sector and in the delivery of refined fuels,” Gibson said. “The more we know about our hydrocarbons, the more efficient, clean, safe, and profitable we become as an industry.”
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02 July 2020