Flotek Industries, Inc. announced that it has entered into transactions to repurchase $15 million of the Company's outstanding convertible notes from existing holders.

The transactions, privately negotiated, provide for the Company to repurchase the notes from institutional holders for 102% of the principal value plus accrued interest through closing. The Company will fund the repurchase with cash on hand. The transactions are scheduled to close on June 29, 2012.

"The repurchase of over 20% of Flotek's outstanding convertible notes further reinforces the Company's strong financial position and Flotek's continued robust cash generation," said John Chisholm, Flotek's Chairman, President and Chief Executive Officer. "Moreover, our outlook for the balance of 2012 provides comfort that, even with this aggressive reduction in the Company's total debt, we will generate cash well in excess of our capital needs, providing plenty of dry powder to act on future strategic initiatives."

Including this debt reduction, the Company has improved its balance sheet through reducing leverage by approximately $99 million, or 64% since March 2009. At the same time, net of debt reduction and recent tax payments, the Company's cash balances have risen from just $600,000 on March 31, 2009 to approximately $24 million prior to the settlement of today's debt repurchase. In addition, the Company has an additional $35 million revolving credit facility which remains undrawn.

In the first six months of 2012, Flotek retired $51 million in debt.

"There is no doubt that Flotek is a stronger, more robust enterprise as the result of the continued improvement in our balance sheet," added Chisholm. "This is the result of the hard work and dedication of the entire Flotek team. Moreover, that dedication continues to result in new business opportunities that should continue to provide industry-leading revenue and profit growth in the second quarter and beyond."