Flotek Industries, Inc. provided an update regarding flare monitoring regulations issued by the Environmental Protection Agency (EPA) on December 20, 2024. The EPA issued proposed amendments to its New Source Performance Standards and Emission Guidelines for Existing Sources for the Crude Oil and Natural Gas Source Category rules, specifically addressing the monitoring of Net Heating Value (NHV) of flares.
The company's JP3 system was designated as an approved measurement technology for the initial flare regulations on July 12, 2024, making it the first approved alternative method. Following this approval, Flotek's Data Analytics segment began providing flare monitoring services utilizing its proprietary JP3 VeraCal flare monitoring analyzer.
Third-quarter revenues from the Data Analytics segment increased 30% from the second quarter of 2024, partly due to new flare monitoring services, with 25% of total quarterly segment revenues derived from this application. As of September 30, 2024, the company had completed 15 flare tests, and management expects significant growth in the Data Analytics segment in 2025 leveraging the VeraCal analyzer.
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