HOUSTON — Flotek Industries, Inc. announced today that the Company has entered into a multi-year bulk chemical supply agreement with Pioneer Natural Resources Pumping Services, LLC, reports PRNewswire.
The Agreement provides that Pioneer will purchase 80% of certain blended chemistries from Flotek for a period of three years with an option to extend the Agreement beyond the initial term.
Over the past several months, Pioneer and Flotek have worked together to expand their existing relationship leading to this formal supply agreement to meet the growing completion chemical needs of Pioneer.
While economic terms will not be disclosed, the agreement provides a framework for preferential pricing for Pioneer while enhancing Flotek''s margin potential through a pricing schematic related to raw material prices and purchase volumes. The initial term of the contract will run through April 2015.