Flotek Industries (FTK) to separate role of Chairman and CEO; Elects David Nierenberg as Chairman; John W. Chisholm will remain as President and CEO

March 20, 2019 7:17 AM EDT

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Flotek Industries, Inc. (NYSE: FTK) today announced that as part of its ongoing commitment to strong corporate governance, the Board has decided to separate the role of Chairman and Chief Executive Officer effective as of the 2019 Annual Meeting. John W. Chisholm will remain as the President and CEO of Flotek. In connection with separating the roles of Chairman of the Board and CEO, the Board has determined to elect David Nierenberg as Chairman of the Board effective as of the 2019 Annual Meeting. Mr. Nierenberg will continue to serve as Chairman of the Strategic Capital Committee, which is currently reviewing a wide range of options to determine how Flotek will deploy the remaining net proceeds from the sale of Florida Chemical Company, LLC ("FCC"). L.V. "Bud" McGuire will continue in the role of Lead Independent Director.

Additionally, Flotek has increased the size of its Board of Directors from seven to eight directors and has appointed Paul Hobby to the Board, effective immediately. Mr. Hobby shall stand for re-election at the 2019 Annual Meeting together with the Company's other nominees. The Board has also appointed Mr. Hobby to the Board's Corporate Governance and Nominating Committee and the Company's Strategic Capital Committee.

These initiatives follow constructive dialogue and collaboration with BLR Partners LP ("BLR"), a Flotek shareholder, regarding the Company's strategic plans and Board composition.

"We appreciate the input we have received from BLR and all of our shareholders. I look forward to working with David, Paul and the rest of the Board to execute our plan and increase value for shareholders," said Mr. Chisholm. "We have executed a number of value-creating initiatives including the sale of the FCC business and continued cost-cutting programs to improve long-term margins. We are now refocusing the growth strategy of our Energy Chemistry Technologies segment to position it for enhanced long-term performance."

Mr. Nierenberg commented, "I believe that Flotek has significant turnaround potential and I am excited to take on the role of Chairman at this important juncture. I look forward to working closely with John and the Board and welcome the contributions and expertise of our new director, Paul Hobby. This Board will continue to take the necessary actions to enhance performance and create value for our shareholders."

Flotek and BLR have entered into an agreement under which BLR has agreed to certain customary standstill, voting and other provisions with Flotek. The complete agreement will be filed in a Form 8-K with the U.S. Securities and Exchange Commission.

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