Overview

• Oilfield services provider's Q1 revenue beat analyst expectations

• Q1 adjusted net income and adjusted EBITDA both beat analyst expectations

• Company raised quarterly dividend by 12.5% and closed Valiant acquisition

Outlook

• Flowco expects continued demand for production optimization and artificial lift solutions

• Company anticipates earnings growth through the remainder of the yr

• Flowco says North American focus has insulated it from recent international market disruptions

Result Drivers

• PRODUCTION SOLUTIONS GROWTH - Higher Surface Equipment revenue and one month of earnings from Valiant acquisition drove Production Solutions segment growth

• NATURAL GAS TECHNOLOGIES - Segment revenue declined slightly due to lower Vapor Recovery system sales, partly offset by increased rentals and Natural Gas Systems sales

• CORPORATE COSTS - Higher corporate expenses driven by legal and filing costs related to Form S-3 filing and secondary equity offering

Company press release: ID:nBw5r3NZa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the oil related services and equipment peer group is "buy"

• Wall Street's median 12-month price target for Flowco Holdings Inc is $31.50, about 25.1% above its May 5 closing price of $25.18

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 17 three months ago

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