Flowco Holdings
It rents out the machines that keep old oil and gas wells flowing once the ground's own pressure fades, and builds those machines itself.
Our viewNeutral Medium conviction
The scores
The profile · 1-4
Growth3/4 ↓
Rentals grew about 16% without acquisitions on more units at higher rates, but much of the reported rise was bought.
Business quality3/4 ↓
Rates and unit counts both rose and it earns the cohort's best return on capital, but nothing structural stops a rival.
Financial position3/4 →
Debt is real but well covered, most of the borrowing base undrawn, no maturity wall - not self-funding, because acquisitions run on the revolver.
Execution record2/4 →
Four material weaknesses still open at 30 June 2026, and an accounting error found in July that revised five reporting periods including the audited year.
Per share capture3/4 →
Unit count flat, deals paid in cash, a buyback and a dividend - not intact, because the tax agreement routes 85% elsewhere.
Potential2/4 →
The base is large and penetration about one well in forty-four, but nothing is contracted: no backlog, no named customer.
Risk profile3/4 →
No customer over 10%, but one commodity, one country and a sponsor group nominating most of the board - concentrated, not binary.
Valuation3/4 →
The price broadly pays for the business as it runs today. Not cheap: about 13.7 times a profit margin that has fallen two years running.
Evidence quality3/4 →
Everything central is filed and current, with six outside issuers cited - but the growth figure the argument turns on is an inference.
The Verdict
We rate Flowco neutral. It rents and sells the machines that keep old oil and gas wells flowing once the ground's own pressure fades. The business is mixed: it is the cheapest of its listed rivals and earns the best return, but most of its recent growth came from a company it bought, margins are falling, and management says its own financial controls do not work. The price is fair, not cheap: about right if Flowco keeps running as today, with no credit for unproven growth. The view hinges on the business growing without buying companies, with its margin turning back up. The discount looks earned.
The long caseAmerica pumps near-record oil from fewer wells, so keeping old wells flowing is a permanent cost; Flowco must grow from that without buying more companies.
The evidence under this - 9 claims
C01facthigh confidence
Flowco rents and sells production optimisation, artificial lift and emissions capture equipment to United States onshore oil and gas producers, through two segments, Production Solutions and Natural Gas Technologies.
C18factmedium confidence
Flowco is the cheapest of the three listed United States onshore production-phase rental businesses on every price measure the cohort can strike, while earning the highest return on invested capital of the three.
against this
- The cohort is two peers, not four, so it is below the sample-size gate that would let it move a score, and one of the two is withheld from the operating-profit multiples because the vendor's margin for Kodiak is 4.75 points above the filer's own XBRL.
- Cheap against two comparables is not cheap in the abstract. The discount has visible causes on this file: unremediated material weaknesses, a twenty-month record, an umbrella-partnership structure with a growing tax receivable agreement, a free float of 22.2 million shares against 90.3 million economic units, and short interest at 16.3% of that float.
- Neither peer is a clean comparison. Archrock puts 60% of its fleet in midstream gathering and processing, which Flowco does not sell, and Kodiak discloses no split at all between gathering and gas lift horsepower.
- 2026-09-26editedRe-verified against the research pack refreshed on 2026-09-26 at the 2026-09-25 close: still the cheapest of three on every price measure the cohort strikes and the highest return on invested capital; the short-interest figure in the counter-evidence moved to the 15 September settlement.
C03facthigh confidence
Q2 2026 total revenues were $235.9M against $193.2M in Q2 2025, a rise of 22.1%.
C05inferencemedium confidence
About $29.7M of the $42.6M Q2 2026 revenue increase came from Valiant, leaving roughly $12.9M of organic growth - about 6.7% rather than the reported 22.1%.
derivedThe 10-Q names Valiant as the source of $15.2M of the sales increase. For rentals it names surface equipment at $13.0M and vapour recovery at $3.1M of the $30.6M rise, and names downhole component fleets from Valiant as the only other driver, leaving a $14.5M residual. $15.2M plus $14.5M is $29.7M against a total increase of $42.6M. The residual implies about $5,852 per unit per month across the 826 average active downhole systems the filing reports, which sits between the disclosed vapour recovery rate of $5,128 and surface equipment rate of $14,023 and is therefore coherent.
against this
- The rental residual is not named as Valiant in dollars. The 10-Q lists three drivers and quantifies two, so attributing the whole remainder to the Valiant downhole fleet is an attribution rather than a disclosure; some part could be mix or pricing elsewhere.
- The organic rental half is much stronger than the 6.7% total suggests: stripping the residual out, rentals still grew about 15.8% organically on fleet count up 12% and rates up 8%. The weakness is concentrated in the sales half, which fell about 3.4% organically as customers shifted from buying vapour recovery units to renting them - a shift that moves revenue between lines rather than losing it.
- Management stated on the Q2 2026 call that Valiant was performing ahead of the plan it had guided, which if true means the acquired contribution is larger and the organic residual smaller still.
C08facthigh confidence
Adjusted EBITDA margin fell from 42.3% in Q4 2025 to 40.8% in Q1 2026 and 39.8% in Q2 2026.
C10facthigh confidence
Management identified four material weaknesses and concluded that both disclosure controls and internal control over financial reporting were not effective as of 31 December 2025.
C11facthigh confidence
Those material weaknesses continue to exist as of 30 June 2026 and disclosure controls remain not effective.
C40inferencemedium confidence
At about 13.7 times operating profit after the amortisation of what it bought, the price assumes Flowco keeps roughly the margin it has now and grows without buying anything, on a business whose organic growth was about 7% and whose operating margin has fallen for two straight years.
derivedCombines the frame multiple in C19 with the organic growth reading in C05 and the margin path in C07. The claim is that at about fourteen times operating profit neither of the two things the multiple depends on - the margin holding and growth continuing without acquisitions - is currently being demonstrated, while neither is being clearly refuted either.
against this
- The same price is the lowest of the three listed comparables on every lens the cohort can strike, and Flowco earns the best return on invested capital of the three, so the multiple already carries a discount for exactly these doubts.
- Free cash flow is real and large - $102.1M in H1 2026 before acquisitions, on a price to free cash flow of about 8.6 times in the refreshed pack - which is not what a business priced for a margin that must hold looks like.
- Rental revenue, 56% of the total, grew about 15.8% organically on unit counts up 12% and rates up 8%; the weak organic figure is a blend that the declining equipment-sales half drags down, and that half is partly customers choosing to rent instead.
- 2026-09-26editedFrame multiple carried from the re-struck C19: about 14.5 to about 13.7 times operating profit at the 2026-09-25 close; price to free cash flow 9.3 to 8.6. The reading of what the price assumes is unchanged.
C19estimatemedium confidence
Enterprise value is about 13.7 times trailing twelve-month operating income, against about 6.3 times the same period's earnings before that depreciation is subtracted.
derivedEnterprise value of $2,104.6M from the research pack refreshed on 2026-09-26 at the 2026-09-25 close, over trailing operating income of $154.1M built entirely from filed figures: FY2025 income from operations of $149,012 thousand, less filed H1 2025 of $72,443 thousand, plus filed H1 2026 of $77,511 thousand. The trailing revenue this implies, $819.5M, reconciles exactly to the pack's four-quarter total revenue and to the filer's own `Revenues` tag, which is the check that the periods line up. The pack's own EV/EBIT, struck on the vendor's operating margin, reads 13.6; the 6.3 is the pack's EV/EBITDA.
against this
- For a rental-fleet business the depreciation is a genuine economic cost of the asset wearing out, so the gap between the two multiples is not an accounting artefact to be argued away - but it is also not all acquisition amortisation, and treating it as if it were would overstate the case.
- H1 2026 capital spending of $71.9M ran at 79% of H1 depreciation and amortisation of $90.9M, so cash going back into the fleet is below the charge, which supports reading part of the charge as purchase accounting rather than as maintenance the company is skipping.
- The frame was chosen because the company has made three transformative transactions in twenty-one months. If the acquisitions stop, the amortisation runs off and the two multiples converge, which would make the operating-profit lens the harsh one rather than the fair one.
- 2026-09-26editedRe-struck at the 2026-09-25 close from the refreshed pack: enterprise value $2,250.8M to $2,104.6M, so about 14.5 to 13.7 times filed trailing operating income and 6.7 to 6.3 times EBITDA. The filed operating income is unchanged.
The company
A new shale well flows on its own at first, then the pressure in the rock fades and output drops. Flowco sells the fix. Its main system pumps compressed gas deep into the well to lighten the column of oil, with no moving parts down the hole. It also captures gas escaping at the wellhead and sends it to be sold.
Producers treat this as a running cost, not an investment. Diamondback, the largest pure Permian producer, books it with its other upkeep costs.
The evidence under this - 3 claims
C01facthigh confidence
Flowco rents and sells production optimisation, artificial lift and emissions capture equipment to United States onshore oil and gas producers, through two segments, Production Solutions and Natural Gas Technologies.
C44facthigh confidence
High pressure gas lift injects compressed gas deep into the wellbore to lighten the liquid column, has no electrical or moving parts downhole, and is used in the first one to two years of a shale well's life.
C30facthigh confidence
Diamondback Energy, the largest pure-play Permian producer, books artificial lift inside lease operating expense and reported $114M of additional workover, artificial lift, maintenance and utility costs in FY2025.
How it makes money
Mostly rent. Producers pay a monthly rate for systems in the field, on contracts from month to month up to four years; the rest is sales of equipment and parts. Rental rates rose 8.3% on its main equipment in the June quarter from a year earlier, while the number of systems working rose 12%.
The evidence under this - 2 claims
C39facthigh confidence
Flowco's rental contracts run from month-to-month up to 48 months, and the filings disclose no backlog, no order book and no named customer.
C25facthigh confidence
Average monthly rental rates rose 8.3% on surface equipment and 5.8% on vapour recovery units year-over-year in Q2 2026, while average active units rose 12% and 2%.
Where the money comes from, stream by stream
| Stream | Share of sales (Q2 2026) | How it earns it |
|---|---|---|
| Downhole Components | 42.4% | Plunger lift, gas lift parts and, since Valiant, electric submersible pumps, sold, rented and serviced to producers. |
| Surface Equipment | 30.0% | High pressure gas lift systems rented to producers by the unit per month, contracts from month-to-month up to four years. |
| Vapor Recovery | 23.9% | Rented units that capture gas escaping at the wellhead so producers sell it instead of venting or flaring. |
| Natural Gas Systems | 3.6% | Gas handling systems built in-house and sold to outside customers; most output goes to Flowco's own rental fleets. |
Who runs it
Joe Bob Edwards, a former partner at White Deer, one of the two private-equity firms that built Flowco, has run it since June 2024; Jonathan Byers has run its finances since October 2024. Insiders control about a third of the votes, almost all through the chairman's firm, GEC, while Edwards owns very little himself. The yearly bonus rides almost entirely on profit before depreciation; in 2025 that missed the board's own floor and paid nothing. His share awards simply vest with time.
The evidence under this - 3 claims
C49facthigh confidence
Joseph R. Edwards has been president and chief executive since June 2024, after White Deer Energy from 2011 (managing partner 2018 to 2024) and First Reserve from 1998; Jonathan W. Byers has been chief financial officer since October 2024, after serving as chief financial officer of CSI Compressco from 2021 to 2024; Jonathan B. Fairbanks, managing partner of Global Energy Capital since 2008, has chaired the board since 2024.
C50facthigh confidence
At March 23, 2026 the directors and senior executive officers as a group held 35.4% of the combined vote, nearly all of it the chairman's through GEC at 33.4%; White Deer held 16.0% and the chief executive 50,000 Class A shares, under 1%. Class A and Class B vote one-for-one, Flowco ceased to be a controlled company that day, and GEC still nominates two designees and three independent directors.
C51facthigh confidence
Flowco's 2025 annual bonus paid 90% on adjusted EBITDA (threshold $322.0M, target $340.0M, stretch $360.0M) and 10% on a safety rate; adjusted EBITDA of $311.9M missed the threshold and paid nothing, the safety goal paid 188%. Long-term pay in 2025 was IPO restricted stock units cliff-vesting after three years, with no performance units granted.
against this
- The proxy names return on capital employed and free cash flow among the metrics the committee employs, so the 2026 plan may weight them; its 2026 goals are not disclosed.
- The chief executive's target bonus is 100% of salary, and salary rose from $700,000 to $775,000 for 2026 despite the missed profit goal.
Why it wins, and who could beat it
Why customers come back
Flowco builds the machines it rents, at six plants of its own, so it keeps the manufacturing margin other renters pay to an outside builder. Each system costs it less, and every rental earns a better return.
The evidence is in the rents: in the June quarter it raised them on both of its fleets while adding units at the same time. What it does not publish is how often contracts renew or how much of the fleet is working.
The evidence under this - 2 claims
C46management claimmedium confidence
Flowco manufactures its own core equipment at six domestic plants, which its 10-K says captures manufacturing margin, reduces rental fleet capital spending and underpins its margins.
against this
- This is the company describing its own competitive advantage in its own annual report, and it publishes no unit-cost comparison against a third-party packager that would let anyone test it. No outside party publishes one either.
- Vertical integration also means fixed manufacturing cost that has to be filled. Intercompany sales of natural gas systems to Production Solutions fell from $17.1M to $13.7M in Q2 2026 because high pressure gas lift customers took fewer units than expected, which is the same integration working against the company.
- Archrock and Kodiak rent compression on the same model without the same manufacturing footprint, and Archrock earns a comparable return on invested capital, so the integration is not obviously the source of the return.
C25facthigh confidence
Average monthly rental rates rose 8.3% on surface equipment and 5.8% on vapour recovery units year-over-year in Q2 2026, while average active units rose 12% and 2%.
The threat
SLB, the oilfield giant, bought ChampionX in 2025 and now sells every lift method Flowco does, on one contract, from a company with $35.7B of sales. Archrock and Kodiak rent large compressors that can do the same job for many wells from one site.
The evidence under this - 3 claims
C13facthigh confidence
SLB acquired ChampionX during 2025, and its artificial lift line now covers electric submersible pumps, gas lift, plunger lift and rod lift - every technology Flowco sells - inside a company reporting $35.7B of 2025 revenue.
C31facthigh confidence
Archrock states in its FY2025 10-K that 40% of its operating fleet is used in gas lift applications, the other 60% being midstream gathering and processing.
C32facthigh confidence
Kodiak Gas Services names centralised gas lift as one of its headline applications and as one of the more effective artificial lift technologies for crude oil in the Permian and Eagle Ford.
The rivals: SLB, AROC, KGS.
Who else does this, rival by rival
| Ticker | Rival | How far along | Priced against it |
|---|---|---|---|
| SLB | SLB, through its 2025 acquisition of ChampionXPriced against it: Different product | On sale | Different product |
| AROC | ArchrockPriced against it: Yes | On sale | Yes |
| KGS | Kodiak Gas ServicesPriced against it: Yes | On sale | Yes |
How big it could get
How big this could get
America had 918,481 producing oil and gas wells in 2024, down from a 2014 peak. But the share drilled sideways through shale, which lose pressure fastest and need this equipment, rose from 10% to 22%: about 202,000 wells, and growing.
Flowco's 4,600 working systems reach about one in forty-four of them. Meanwhile oil output is forecast to rise to 14.3 million barrels a day in 2027 from fewer wells.
The evidence under this - 3 claims
C27facthigh confidence
The United States had 918,481 producing oil and gas wells in 2024, down from a 2014 peak of 1,031,161, with the horizontal share rising from 10% to 22% and 78% of wells producing 15 barrels of oil equivalent a day or less.
C26facthigh confidence
Flowco had a fleet of over 4,600 active systems at 31 December 2025.
C29facthigh confidence
The Energy Information Administration forecasts United States crude oil production of 13.8 million barrels a day in 2026 and 14.3 million in 2027.
Where the growth is coming from, business by business
Where the growth is coming from
| Business | Share of revenue | Growth: last quarter | Last half-year | Last year |
|---|---|---|---|---|
| Downhole Components | 42% | +42.1% | +29.1% | - |
| Surface Equipment | 30% | +22.5% | +25.3% | - |
| Vapor Recovery | 24% | -2.2% | +3.7% | - |
| Natural Gas, Production | 4% | +17.7% | -41.5% | - |
| Whole company | 100% | +22.1% | +15.5% | - |
The filed split through 2026-06-30. These rates are not carried forward: the reading below says why.
How we read it: The organic reading: Downhole's 29% is Valiant, bought March 2026, whose $29.7M matches Downhole's whole $29.6M rise. Surface's 22% includes Archrock's fleet. Organic growth was about 7%, so neither rate is carried forward.
The results
The numbers
Is it growing?Slow
Sales grew 7.7% over the twelve months to Jun 2026, slower than the 42% in the year to Dec 2025.
Is it profitable?Healthy
Operating margin is 19%, down from 32% in the year to Dec 2023.
Does growth pay off?Costly
Running costs take 36¢ of each sales dollar, up from 34¢ in the year to Dec 2022.
Does it earn good returns?Strong
Each dollar put into the business earns 31% a year after tax, up from 18% in the year to Dec 2024.
Is it making cash?Strong
It turned 25% of sales into free cash, $208M over the last twelve months, after spending 17% of sales on buildings and equipment.
Is the balance sheet safe?Light debt
It owes $279M more than the cash it holds, about 0.8 years of the cash its operations bring in.
Is profit turning into cash?Real cash
Free cash flow was 4.2 times net income.
All the numbers
Filed figures from the company's 10-K and 10-Q, read 2026-10-04. Fiscal years end in December.
| Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 | 12 mo to Jun 2026 | |
|---|---|---|---|---|---|
| Size and growth | |||||
| Sales | $149M | $243M | $535M | $760M | $820M |
| Sales growth | - | +64% | +120% | +42% | +7.7% |
| Profit | |||||
| Gross margin | 63% | 57% | 51% | 54% | 55% |
| Operating margin | 29% | 32% | 22% | 20% | 19% |
| Net margin | - | - | - | 5.4% | 6.1% |
| What growth costs, per sales dollar | |||||
| Selling, general and admin | 9.5% | 6.3% | 12% | 16% | 16% |
| Pay in shares | 0.3% | 0.0% | 0.2% | 1.5% | 1.1% |
| Capital spending | 72% | 18% | 17% | 17% | 17% |
| Cash | |||||
| Cash from operations | $66.6M | $81.9M | $179M | $294M | $344M |
| Free cash flow | −$40.4M | $38.3M | $88.9M | $167M | $208M |
| Balance sheet | |||||
| Cash and short-term investments | - | $0 | $4.62M | $4.52M | $19.2M |
| Debt | - | $235M | $636M | $168M | $298M |
| Net cash | - | −$235M | −$631M | −$163M | −$279M |
| Returns and shares | |||||
| Return on capital | - | - | 18% | 29% | 31% |
| Shares (diluted) | - | - | - | 90.7M | 44.0M |
What growth costs
Growing has made Flowco less profitable so far. Office and selling costs rose when it became a public company and have since held steady against sales, and spending on new rental machines keeps pace with sales. What climbs faster is the wear-and-tear charge on the fleets and companies it bought, so each year a smaller share of sales reaches operating profit.
The evidence under this - 3 claims
C48facthigh confidence
Per sales dollar, selling, general and administrative cost was 11.7 cents in FY2024, 15.6 in FY2025 and 15.6 over the four quarters to June 2026, and 15.1 in Q2 2026 against 16.9 a year earlier; capital spending was 16.9, 16.8 and 16.5 cents over the same three periods.
against this
- FY2024 holds only about half a year of the combined company (C22), and FY2025 carries the first year of public-company and IPO costs and stock pay, so the step from 11.7 to 15.6 cents mixes a perimeter change with a cost trend.
- FY2023 is Estis alone as accounting predecessor, at 6.3 cents of overhead and a 32.2% operating margin, and is not comparable with the combined company.
C06facthigh confidence
Depreciation and amortisation was $49.4M in Q2 2026, 20.9% of revenue, against $33.2M a year earlier.
C07facthigh confidence
Operating margin fell from 21.8% in FY2024 to 19.6% in FY2025 and 17.5% in Q2 2026, against 19.2% in Q2 2025.
The last report (11 Aug)
Quarter ended June 2026, filed figures.
22%
Sales growth
against the same quarter a year earlier
12.6%
Growth from the quarter before
against 6.2% the quarter before that
17¢
Operating profit
per dollar of sales
In the June 2026 quarter sales were $235.9M, up 22.1%, and management led with that. Take out Valiant, the pump maker bought in March, and underlying growth was about 6.7%.
Margins went the other way. The adjusted profit margin fell for a second quarter to 39.8%, as lubricant costs hit records and contracts do not let Flowco pass them on. The adjusted profit forecast for the next quarter, $92M to $98M, is barely above this one.
What it did to the thesisIt supported the view that Flowco is fairly priced rather than cheap. Most of the growth was bought, and the business on its own grew modestly while its margin fell again. Whether it can grow without acquisitions is still unproven, and that is the open question.
The quarter in detail
Sales growth from the previous quarter, filed figures.
Earnings per share $0.36 against $0.37 expected; $0.28 as filed, the gap being what the company adds back.
The evidence under this - 6 claims
C03facthigh confidence
Q2 2026 total revenues were $235.9M against $193.2M in Q2 2025, a rise of 22.1%.
C04facthigh confidence
Flowco completed the Valiant acquisition on 2 March 2026 for about $316.0M, of which $283.1M was cash funded on the revolving credit facility and the rest 1,454,849 Class A shares.
C05inferencemedium confidence
About $29.7M of the $42.6M Q2 2026 revenue increase came from Valiant, leaving roughly $12.9M of organic growth - about 6.7% rather than the reported 22.1%.
derivedThe 10-Q names Valiant as the source of $15.2M of the sales increase. For rentals it names surface equipment at $13.0M and vapour recovery at $3.1M of the $30.6M rise, and names downhole component fleets from Valiant as the only other driver, leaving a $14.5M residual. $15.2M plus $14.5M is $29.7M against a total increase of $42.6M. The residual implies about $5,852 per unit per month across the 826 average active downhole systems the filing reports, which sits between the disclosed vapour recovery rate of $5,128 and surface equipment rate of $14,023 and is therefore coherent.
against this
- The rental residual is not named as Valiant in dollars. The 10-Q lists three drivers and quantifies two, so attributing the whole remainder to the Valiant downhole fleet is an attribution rather than a disclosure; some part could be mix or pricing elsewhere.
- The organic rental half is much stronger than the 6.7% total suggests: stripping the residual out, rentals still grew about 15.8% organically on fleet count up 12% and rates up 8%. The weakness is concentrated in the sales half, which fell about 3.4% organically as customers shifted from buying vapour recovery units to renting them - a shift that moves revenue between lines rather than losing it.
- Management stated on the Q2 2026 call that Valiant was performing ahead of the plan it had guided, which if true means the acquired contribution is larger and the organic residual smaller still.
C08facthigh confidence
Adjusted EBITDA margin fell from 42.3% in Q4 2025 to 40.8% in Q1 2026 and 39.8% in Q2 2026.
C09management claimmedium confidence
Lubricant costs are set by refining crack spreads at an all-time high, Flowco's contracts do not let it share that cost with customers, and Q3 2026 pricing is already fixed.
against this
- The chief financial officer contradicted the emphasis in the same answer, saying operations and maintenance expense was 'probably a bigger part' of the cost increase than lubricant, which makes the uncontrollable external input the smaller half of the problem and the controllable internal one the larger.
- Management also said it expects to make progress on the maintenance half 'in the next 6 months', which is a forecast from the party whose margin depends on it and has no track record behind it - the company has been public for twenty months.
- Rental rates rose about 8% on surface equipment and 6% on vapour recovery over the year, so the company does raise prices; the claim is that it cannot pass this specific input through, not that it has no pricing power at all.
C17management claimmedium confidence
Management guided Q3 2026 adjusted EBITDA to $92M-$98M, a midpoint 1.2% above Q2 2026 after Q2 grew 9.8% on Q1.
sourceFlowco Q2 2026 earnings call transcriptprimaryFlowco Q2 2026 results release, Exhibit 99.1 to Form 8-Kprimary
against this
- Q3 2026 is the first quarter carrying a full contribution from Valiant in both the base and the guide, so the deceleration from 9.8% to 1.2% is partly arithmetic rather than a statement about demand - Q2's step included two extra months of an acquired business.
- Management attributes the flatness to cost pressure it says it has reflected in the guide, and said capital deployment plans for the full year are unchanged, which is a different story from demand weakening.
- The company has guided four times since listing and says it landed Q2 'within our original guidance range', so there is no record of missing a guide - but there is also no record long enough to say it beats one.
- Flowco publishes no full-year guidance at all, only one quarter forward, so there is no annual figure to subtract a year-to-date from and no way to test the back half against a commitment.
What management did with the money
It bought Valiant for about $316.0M, mostly on borrowed money, and still has $446.4M left to borrow with debt below one year's earnings. In July it found an accounting error and revised five past reporting periods. Its production chief resigned in August.
Insiders in 2026Q2: 2 purchases and 1 sales, from their Form 4 filings.
The evidence under this - 4 claims
C04facthigh confidence
Flowco completed the Valiant acquisition on 2 March 2026 for about $316.0M, of which $283.1M was cash funded on the revolving credit facility and the rest 1,454,849 Class A shares.
C35facthigh confidence
Borrowings were $274.1M against a $721.8M borrowing base at 7 August 2026, leaving $446.4M available, with leverage below one times earnings before interest, tax, depreciation and amortisation.
C12facthigh confidence
In July 2026 Flowco identified an accounting Error in how cash distributions to the pre-IPO owners had been recorded, and revised five previously issued reporting periods including the audited FY2025 statements.
against this
- Management concluded the Error was not material under SAB 99 and SAB 108, and the revision changed no cash, no net income, no earnings per share, no adjusted EBITDA, no ownership percentage and no total equity - it moved amounts between additional paid-in capital and retained earnings only.
- The separate 10-K/A filed the same day was checked and is unrelated: its explanatory note says it exists solely to correct omitted language in paragraph 4 of the officer certifications, and it contains only the cover page, that note and the two exhibits.
- The largest misstatement was $28.5M of paid-in capital overstated against retained earnings understated at 31 December 2025, inside a company reporting $365.1M of stockholders' equity - a presentational error of real size but no economic effect.
C37facthigh confidence
The executive vice president running Production Solutions, 68% of revenue, resigned effective 3 August 2026 and was replaced by Valiant's former chief executive eight days later.
The price, and where we disagree
In short. Fair. The price pays for Flowco as it runs today. It would be a bargain only if it grew without buying companies and its profit margin turned back up.
Share price
$19.14
close,
Price for each $1 of yearly profit
11.9
rivals' middle 38.2
The shares trade below the $22.00 at which the pre-listing owners sold 7.8 million shares in March. Bets against the stock have grown 22.7% since the end of June, to 16.3% of the shares that trade.
The question is close to an answer. The September-quarter results, due 11 November, are the first with Valiant in both this year's and last quarter's figures, so growth can no longer come from the purchase.
The evidence under this - 4 claims
C20facthigh confidence
Pre-IPO owners sold 7,800,000 Class A shares at $22.00 in a registered offering in March 2026, taking $21.175 a share, and Flowco bought back 780,000 of them; the shares last closed at $19.14.
sourceFlowco Form 424B7 secondary offering prospectus supplementprimaryFlowco research pack, frozen at…secondary
against this
- This was a registered secondary offering by financial sponsors, not discretionary open-market selling by operating management, and it dilutes nobody - the company issued no shares and received no proceeds. The research pack's insider block reports the same transactions as nineteen open-market sales by a director and ten-percent owner, which reads as a management view and is not one.
- The same offering removed Flowco's 'controlled company' status under New York Stock Exchange rules, which improves governance, and the company spent about $16.5M buying back a tenth of the deal.
- The offering priced at a 6.9% discount to the prior close of $23.64, which is an ordinary secondary discount rather than a signal about value.
- 2026-09-26editedLast close re-struck from $20.71 (2026-09-12) to $19.14 (2026-09-25) with the refreshed research pack; the offering facts are unchanged.
C21factmedium confidence
Short interest was 3,630,684 shares at the 15 September 2026 settlement, 16.3% of a 22.2 million share free float, up 22.7% from 2,959,946 at the 30 June settlement.
- 2026-09-26editedMoved to the 15 September settlement from the refreshed pack: 3,380,795 shares and 15.2% of float at 31 August become 3,630,684 and 16.3%. The refreshed pack's window starts at 30 June, so the comparison is now against that settlement rather than 15 June.
C17management claimmedium confidence
Management guided Q3 2026 adjusted EBITDA to $92M-$98M, a midpoint 1.2% above Q2 2026 after Q2 grew 9.8% on Q1.
sourceFlowco Q2 2026 earnings call transcriptprimaryFlowco Q2 2026 results release, Exhibit 99.1 to Form 8-Kprimary
against this
- Q3 2026 is the first quarter carrying a full contribution from Valiant in both the base and the guide, so the deceleration from 9.8% to 1.2% is partly arithmetic rather than a statement about demand - Q2's step included two extra months of an acquired business.
- Management attributes the flatness to cost pressure it says it has reflected in the guide, and said capital deployment plans for the full year are unchanged, which is a different story from demand weakening.
- The company has guided four times since listing and says it landed Q2 'within our original guidance range', so there is no record of missing a guide - but there is also no record long enough to say it beats one.
- Flowco publishes no full-year guidance at all, only one quarter forward, so there is no annual figure to subtract a year-to-date from and no way to test the back half against a commitment.
C05inferencemedium confidence
About $29.7M of the $42.6M Q2 2026 revenue increase came from Valiant, leaving roughly $12.9M of organic growth - about 6.7% rather than the reported 22.1%.
derivedThe 10-Q names Valiant as the source of $15.2M of the sales increase. For rentals it names surface equipment at $13.0M and vapour recovery at $3.1M of the $30.6M rise, and names downhole component fleets from Valiant as the only other driver, leaving a $14.5M residual. $15.2M plus $14.5M is $29.7M against a total increase of $42.6M. The residual implies about $5,852 per unit per month across the 826 average active downhole systems the filing reports, which sits between the disclosed vapour recovery rate of $5,128 and surface equipment rate of $14,023 and is therefore coherent.
against this
- The rental residual is not named as Valiant in dollars. The 10-Q lists three drivers and quantifies two, so attributing the whole remainder to the Valiant downhole fleet is an attribution rather than a disclosure; some part could be mix or pricing elsewhere.
- The organic rental half is much stronger than the 6.7% total suggests: stripping the residual out, rentals still grew about 15.8% organically on fleet count up 12% and rates up 8%. The weakness is concentrated in the sales half, which fell about 3.4% organically as customers shifted from buying vapour recovery units to renting them - a shift that moves revenue between lines rather than losing it.
- Management stated on the Q2 2026 call that Valiant was performing ahead of the plan it had guided, which if true means the acquired contribution is larger and the organic residual smaller still.
How we read the multiple
Counting debt, buyers pay about 13.7 times Flowco's operating profit, but only 6.3 times its profit before the cost of its rental fleet wearing out and of what it bought. If those assets keep their value, it is cheap.
At 13.7 times, the price assumes Flowco keeps today's margin and grows without buying anything. It has done neither for two years: its margin fell from 21.8% to 17.5%.
Against its own history. Its own history is short and was rebuilt from three merged companies, so that comparison says little about what a buyer should pay now.
The evidence under this - 5 claims
C19estimatemedium confidence
Enterprise value is about 13.7 times trailing twelve-month operating income, against about 6.3 times the same period's earnings before that depreciation is subtracted.
derivedEnterprise value of $2,104.6M from the research pack refreshed on 2026-09-26 at the 2026-09-25 close, over trailing operating income of $154.1M built entirely from filed figures: FY2025 income from operations of $149,012 thousand, less filed H1 2025 of $72,443 thousand, plus filed H1 2026 of $77,511 thousand. The trailing revenue this implies, $819.5M, reconciles exactly to the pack's four-quarter total revenue and to the filer's own `Revenues` tag, which is the check that the periods line up. The pack's own EV/EBIT, struck on the vendor's operating margin, reads 13.6; the 6.3 is the pack's EV/EBITDA.
against this
- For a rental-fleet business the depreciation is a genuine economic cost of the asset wearing out, so the gap between the two multiples is not an accounting artefact to be argued away - but it is also not all acquisition amortisation, and treating it as if it were would overstate the case.
- H1 2026 capital spending of $71.9M ran at 79% of H1 depreciation and amortisation of $90.9M, so cash going back into the fleet is below the charge, which supports reading part of the charge as purchase accounting rather than as maintenance the company is skipping.
- The frame was chosen because the company has made three transformative transactions in twenty-one months. If the acquisitions stop, the amortisation runs off and the two multiples converge, which would make the operating-profit lens the harsh one rather than the fair one.
- 2026-09-26editedRe-struck at the 2026-09-25 close from the refreshed pack: enterprise value $2,250.8M to $2,104.6M, so about 14.5 to 13.7 times filed trailing operating income and 6.7 to 6.3 times EBITDA. The filed operating income is unchanged.
C40inferencemedium confidence
At about 13.7 times operating profit after the amortisation of what it bought, the price assumes Flowco keeps roughly the margin it has now and grows without buying anything, on a business whose organic growth was about 7% and whose operating margin has fallen for two straight years.
derivedCombines the frame multiple in C19 with the organic growth reading in C05 and the margin path in C07. The claim is that at about fourteen times operating profit neither of the two things the multiple depends on - the margin holding and growth continuing without acquisitions - is currently being demonstrated, while neither is being clearly refuted either.
against this
- The same price is the lowest of the three listed comparables on every lens the cohort can strike, and Flowco earns the best return on invested capital of the three, so the multiple already carries a discount for exactly these doubts.
- Free cash flow is real and large - $102.1M in H1 2026 before acquisitions, on a price to free cash flow of about 8.6 times in the refreshed pack - which is not what a business priced for a margin that must hold looks like.
- Rental revenue, 56% of the total, grew about 15.8% organically on unit counts up 12% and rates up 8%; the weak organic figure is a blend that the declining equipment-sales half drags down, and that half is partly customers choosing to rent instead.
- 2026-09-26editedFrame multiple carried from the re-struck C19: about 14.5 to about 13.7 times operating profit at the 2026-09-25 close; price to free cash flow 9.3 to 8.6. The reading of what the price assumes is unchanged.
C18factmedium confidence
Flowco is the cheapest of the three listed United States onshore production-phase rental businesses on every price measure the cohort can strike, while earning the highest return on invested capital of the three.
against this
- The cohort is two peers, not four, so it is below the sample-size gate that would let it move a score, and one of the two is withheld from the operating-profit multiples because the vendor's margin for Kodiak is 4.75 points above the filer's own XBRL.
- Cheap against two comparables is not cheap in the abstract. The discount has visible causes on this file: unremediated material weaknesses, a twenty-month record, an umbrella-partnership structure with a growing tax receivable agreement, a free float of 22.2 million shares against 90.3 million economic units, and short interest at 16.3% of that float.
- Neither peer is a clean comparison. Archrock puts 60% of its fleet in midstream gathering and processing, which Flowco does not sell, and Kodiak discloses no split at all between gathering and gas lift horsepower.
- 2026-09-26editedRe-verified against the research pack refreshed on 2026-09-26 at the 2026-09-25 close: still the cheapest of three on every price measure the cohort strikes and the highest return on invested capital; the short-interest figure in the counter-evidence moved to the 15 September settlement.
C07facthigh confidence
Operating margin fell from 21.8% in FY2024 to 19.6% in FY2025 and 17.5% in Q2 2026, against 19.2% in Q2 2025.
C22facthigh confidence
Flowco as it exists today was assembled on 20 June 2024 from Estis Compression, Flowco Production Solutions and Flogistix, and everything reported before that date is Estis alone as accounting predecessor.
Priced against its rivals
The competitors its own annual report names, each confirmed against the rival's filing. Measured on price for each $1 of yearly profit, cheapest first:
| Ticker | Company | price for each $1 of yearly profit |
|---|---|---|
| FLOC | Flowco Holdings | 11.9× |
| AROC | Archrock | 16.4× |
| KGS | Kodiak Gas Services | 60.1× |
The middle of the other 2 is 38.2. Flowco Holdings Inc. is cheapest of 3.
Rivals' figures come from a data provider, so read the spread of the group rather than any single pair.
The cheapest of the three listed renters while earning the best return. The discount is this company's own, and its reasons are visible.
Where we disagree with the market
The market believes
A cheap, high-margin, cash-generating business with a successful first acquisition and almost every analyst positive.
We believe
The discount to its two listed rivals is real, earned and about the right size: neither a bargain nor a trap.
All four analysts on the June-quarter call asked about Valiant; none asked about the broken controls, the accounting error or the $108.2M owed to former owners under a tax-sharing deal. Growth without the purchase appears in no filing and has to be worked out by hand.
We would be wrong if the September quarter grows more than 3% from June with the margin steady, which would show the business compounding without buying anything.
What analysts say, and the evidence
Analysts positive
89%
of 9, 1 Sep
Four months earlier
89%
of 9, 1 May
The evidence under this - 5 claims
C05inferencemedium confidence
About $29.7M of the $42.6M Q2 2026 revenue increase came from Valiant, leaving roughly $12.9M of organic growth - about 6.7% rather than the reported 22.1%.
derivedThe 10-Q names Valiant as the source of $15.2M of the sales increase. For rentals it names surface equipment at $13.0M and vapour recovery at $3.1M of the $30.6M rise, and names downhole component fleets from Valiant as the only other driver, leaving a $14.5M residual. $15.2M plus $14.5M is $29.7M against a total increase of $42.6M. The residual implies about $5,852 per unit per month across the 826 average active downhole systems the filing reports, which sits between the disclosed vapour recovery rate of $5,128 and surface equipment rate of $14,023 and is therefore coherent.
against this
- The rental residual is not named as Valiant in dollars. The 10-Q lists three drivers and quantifies two, so attributing the whole remainder to the Valiant downhole fleet is an attribution rather than a disclosure; some part could be mix or pricing elsewhere.
- The organic rental half is much stronger than the 6.7% total suggests: stripping the residual out, rentals still grew about 15.8% organically on fleet count up 12% and rates up 8%. The weakness is concentrated in the sales half, which fell about 3.4% organically as customers shifted from buying vapour recovery units to renting them - a shift that moves revenue between lines rather than losing it.
- Management stated on the Q2 2026 call that Valiant was performing ahead of the plan it had guided, which if true means the acquired contribution is larger and the organic residual smaller still.
C10facthigh confidence
Management identified four material weaknesses and concluded that both disclosure controls and internal control over financial reporting were not effective as of 31 December 2025.
C12facthigh confidence
In July 2026 Flowco identified an accounting Error in how cash distributions to the pre-IPO owners had been recorded, and revised five previously issued reporting periods including the audited FY2025 statements.
against this
- Management concluded the Error was not material under SAB 99 and SAB 108, and the revision changed no cash, no net income, no earnings per share, no adjusted EBITDA, no ownership percentage and no total equity - it moved amounts between additional paid-in capital and retained earnings only.
- The separate 10-K/A filed the same day was checked and is unrelated: its explanatory note says it exists solely to correct omitted language in paragraph 4 of the officer certifications, and it contains only the cover page, that note and the two exhibits.
- The largest misstatement was $28.5M of paid-in capital overstated against retained earnings understated at 31 December 2025, inside a company reporting $365.1M of stockholders' equity - a presentational error of real size but no economic effect.
C15facthigh confidence
The tax receivable agreement liability was $108.2M at 30 June 2026 against $22.0M at 31 December 2025, and Flowco has made no payment under it.
sourceFlowco Q2 2026 Form 10-QprimaryFlowco Q2 2026 results release, Exhibit 99.1 to Form 8-Kprimary
against this
- The liability exists because the company acquired tax basis worth more than the liability: it is 85% of expected tax benefits, so the other 15% accrues to Class A holders and would not exist at all without the exchanges that created it.
- It is not due soon. The company expects to pay about $3.5M within twelve months and states it expects no payments at all in the remainder of 2026, so the discounted cost to a holder is well below the carrying figure.
- At $108.2M it is 5.6% of the market value in the frozen pack - real, growing quickly, and small beside the operating questions.
C18factmedium confidence
Flowco is the cheapest of the three listed United States onshore production-phase rental businesses on every price measure the cohort can strike, while earning the highest return on invested capital of the three.
against this
- The cohort is two peers, not four, so it is below the sample-size gate that would let it move a score, and one of the two is withheld from the operating-profit multiples because the vendor's margin for Kodiak is 4.75 points above the filer's own XBRL.
- Cheap against two comparables is not cheap in the abstract. The discount has visible causes on this file: unremediated material weaknesses, a twenty-month record, an umbrella-partnership structure with a growing tax receivable agreement, a free float of 22.2 million shares against 90.3 million economic units, and short interest at 16.3% of that float.
- Neither peer is a clean comparison. Archrock puts 60% of its fleet in midstream gathering and processing, which Flowco does not sell, and Kodiak discloses no split at all between gathering and gas lift horsepower.
- 2026-09-26editedRe-verified against the research pack refreshed on 2026-09-26 at the 2026-09-25 close: still the cheapest of three on every price measure the cohort strikes and the highest return on invested capital; the short-interest figure in the counter-evidence moved to the 15 September settlement.
What could go wrong, and how we would know
The risks
- Controls that do not work. Four weaknesses in financial controls, still open at 30 June, and five past periods already revised for one error.
- Margins squeezed. Record lubricant costs cannot be passed to customers, and the September quarter's pricing is already fixed.
- Growth that has to be bought. Without acquisitions growth ran about 7%. Paying for the next deal in shares would dilute owners.
- Cash owed to former owners. The tax-sharing deal with the pre-listing owners has grown to $108.2M, and nothing has been paid yet.
The evidence under this - 7 claims
C10facthigh confidence
Management identified four material weaknesses and concluded that both disclosure controls and internal control over financial reporting were not effective as of 31 December 2025.
C11facthigh confidence
Those material weaknesses continue to exist as of 30 June 2026 and disclosure controls remain not effective.
C12facthigh confidence
In July 2026 Flowco identified an accounting Error in how cash distributions to the pre-IPO owners had been recorded, and revised five previously issued reporting periods including the audited FY2025 statements.
against this
- Management concluded the Error was not material under SAB 99 and SAB 108, and the revision changed no cash, no net income, no earnings per share, no adjusted EBITDA, no ownership percentage and no total equity - it moved amounts between additional paid-in capital and retained earnings only.
- The separate 10-K/A filed the same day was checked and is unrelated: its explanatory note says it exists solely to correct omitted language in paragraph 4 of the officer certifications, and it contains only the cover page, that note and the two exhibits.
- The largest misstatement was $28.5M of paid-in capital overstated against retained earnings understated at 31 December 2025, inside a company reporting $365.1M of stockholders' equity - a presentational error of real size but no economic effect.
C09management claimmedium confidence
Lubricant costs are set by refining crack spreads at an all-time high, Flowco's contracts do not let it share that cost with customers, and Q3 2026 pricing is already fixed.
against this
- The chief financial officer contradicted the emphasis in the same answer, saying operations and maintenance expense was 'probably a bigger part' of the cost increase than lubricant, which makes the uncontrollable external input the smaller half of the problem and the controllable internal one the larger.
- Management also said it expects to make progress on the maintenance half 'in the next 6 months', which is a forecast from the party whose margin depends on it and has no track record behind it - the company has been public for twenty months.
- Rental rates rose about 8% on surface equipment and 6% on vapour recovery over the year, so the company does raise prices; the claim is that it cannot pass this specific input through, not that it has no pricing power at all.
C05inferencemedium confidence
About $29.7M of the $42.6M Q2 2026 revenue increase came from Valiant, leaving roughly $12.9M of organic growth - about 6.7% rather than the reported 22.1%.
derivedThe 10-Q names Valiant as the source of $15.2M of the sales increase. For rentals it names surface equipment at $13.0M and vapour recovery at $3.1M of the $30.6M rise, and names downhole component fleets from Valiant as the only other driver, leaving a $14.5M residual. $15.2M plus $14.5M is $29.7M against a total increase of $42.6M. The residual implies about $5,852 per unit per month across the 826 average active downhole systems the filing reports, which sits between the disclosed vapour recovery rate of $5,128 and surface equipment rate of $14,023 and is therefore coherent.
against this
- The rental residual is not named as Valiant in dollars. The 10-Q lists three drivers and quantifies two, so attributing the whole remainder to the Valiant downhole fleet is an attribution rather than a disclosure; some part could be mix or pricing elsewhere.
- The organic rental half is much stronger than the 6.7% total suggests: stripping the residual out, rentals still grew about 15.8% organically on fleet count up 12% and rates up 8%. The weakness is concentrated in the sales half, which fell about 3.4% organically as customers shifted from buying vapour recovery units to renting them - a shift that moves revenue between lines rather than losing it.
- Management stated on the Q2 2026 call that Valiant was performing ahead of the plan it had guided, which if true means the acquired contribution is larger and the organic residual smaller still.
C36facthigh confidence
Class A shares rose from 29.1 million to 44.0 million in H1 2026 while Class B fell from 60.6 million to 46.4 million, leaving total economic units roughly flat at about 90.3 million.
C15facthigh confidence
The tax receivable agreement liability was $108.2M at 30 June 2026 against $22.0M at 31 December 2025, and Flowco has made no payment under it.
sourceFlowco Q2 2026 Form 10-QprimaryFlowco Q2 2026 results release, Exhibit 99.1 to Form 8-Kprimary
against this
- The liability exists because the company acquired tax basis worth more than the liability: it is 85% of expected tax benefits, so the other 15% accrues to Class A holders and would not exist at all without the exchanges that created it.
- It is not due soon. The company expects to pay about $3.5M within twelve months and states it expects no payments at all in the remainder of 2026, so the discounted cost to a holder is well below the carrying figure.
- At $108.2M it is 5.6% of the market value in the frozen pack - real, growing quickly, and small beside the operating questions.
What we still do not know
- How often rental contracts renew. The annual report calls the rate high and never gives a number.
- How much of the fleet is actually working at any time. It reports active systems but not the total.
- Who the biggest customers are. It admits the top ten are a large share of sales and names none.
The evidence under this - 3 claims
C26facthigh confidence
Flowco had a fleet of over 4,600 active systems at 31 December 2025.
C33facthigh confidence
No customer reached 10% of consolidated revenues in FY2025, while the risk factors state Flowco has significant concentration in its top ten customers and put no number on it.
C39facthigh confidence
Flowco's rental contracts run from month-to-month up to 48 months, and the filings disclose no backlog, no order book and no named customer.
What would change our view
- Neutral→AttractiveOrganic growth and margin both turn
It needs all of:
- ○Growth without acquisitions stays above 5% for three quarters in a row, with more rental systems working than a year earlier.checked at the next results, due by 11 Nov
- ○The adjusted profit margin holds above 35%, ending two years of decline.checked at the next results, due by 11 Nov
- Neutral→UnattractiveThe controls or the funding give way
It needs any of:
- ○The weaknesses in financial controls are still unfixed in the fiscal 2027 annual report.watched as it happens
- ○Another acquisition is paid for mainly in new shares rather than cash or borrowing.watched as it happens
We would also be wrong if
- The number of rental systems working falls from a year earlier for two quarters running.
What is coming
- 11 November 2026 Q3 2026 results: Whether the business grows sequentially with Valiant in both periods, adjusted EBITDA against the $92M to $98M guide, and the margin against 39%.
Every dated event ahead
- 11 November 2026 Q3 2026 results: Whether the business grows sequentially with Valiant in both periods, adjusted EBITDA against the $92M to $98M guide, and the margin against 39%.
- February 2027 Q4 2026 results and the FY2026 10-K: Whether the four material weaknesses are remediated, and the first quarter carrying Lifting Solutions, another bought layer on reported growth.
- March 2027 Board independence deadline after losing controlled-company status: Whether the board and its pay and nominating committees turn majority independent while GEC keeps its nomination rights.
- March 2028 Lifting Solutions contingent payment on 2027 results: Whether the bought business earned near management's $23M estimate, the test of the price paid.
Since we wrote this
Written
13 Sep
Price the thesis read
$19.14
25 Sep
- 5 OctThesis reviewThe long case now sits under the verdictAfter the five-name pilot, the owner asked for the long case on every thesis.
- 4 OctThesis reviewOwner's checklist: revenue streams, cost of growth, management, catalystsThe owner's checklist found the method silent on who runs the company, what growth costs, where the money comes from and what is dated ahead; this pass fills those four blocks from the proxy and filings.
- 3 OctNewsFlowco bought a Canadian artificial-lift maker for about $113 million of borrowed cash. View heldFlowco bought Lifting Solutions, a Canadian rod-lift and pump maker, for about $113 million cash.
- 26 SepThesis reviewPrice down 7.6%, multiple now about 13.7 times; view heldThe shares fell to $19.14 with no new filing. That makes the price cheaper without answering the growth and margin questions the 11 November results will.
- 13 SepThesis writtenNeutral, medium convictionA month after results that showed most of the June quarter's growth came from the March acquisition, with margins falling and controls still broken.
Sources 20
Where this came from
Sources - 20
Every claim above cites one of these, or states the reasoning that derived it. The quote is frozen at the date it was read: a link can rot, and an agent fetch returns a reading of a page rather than the page. Backs counts the whole claim ledger, so it can name a claim this page does not surface.
- S01primarycompany filing2026-02-26Item 1 business and technology description, the four material weaknesses and the not-effective control conclusion, customer and vendor concentration, the FY2025 income statement, the 4,600-system fleet figure, and the absence of any named competitorbacksC01C02C07C10C14C24C26C33C39C44C46C48C52
- S02primarycompany filing2026-08-11the rental and sales revenue bridge with unit counts and rates, the Valiant purchase accounting, the tax receivable agreement note, the non-controlling interest split, the accounting Error disclosure, the controls conclusion at 30 June 2026, and the Archrock asset purchasebacksC03C04C06C07C11C12C15C16C23C24C25C36C37C39C47C48C52
- S03primarycompany filing2026-08-11adjusted EBITDA and its margin by quarter, the segment split, the balance sheet, and the company's own free cash flow after acquisitions linebacksC03C08C15C17C34C35C36C42
- S04primarytranscript2026-08-11Flowco Q2 2026 earnings call transcriptthe Q3 adjusted EBITDA guide, the lubricant cost pass-through answer, the chief financial officer's explanation of the umbrella-partnership cash build-up, and nine analyst turns from four analysts including the Valiant EBITDA expectationbacksC09C17C35C38C41
- S05primarycompany filing2026-02-26the Q4 2025 adjusted EBITDA margin, and the statement that figures before 20 June 2024 are Estis Compression alone as accounting predecessorbacksC08C22
- S06primarycompany filing2026-03-19the 7,800,000-share sponsor sell-down at $22.00, the 780,000-share company repurchase, and the loss of controlled-company statusbacksC20C50
- S07primarycompany filing2026-08-10the $0.14 special dividend to Class A holders only, and that it is explicitly not a precedentbacksC38
- S08primarycompany filing2026-07-30that the ordinary $0.09 dividend is matched by a corresponding per-unit distribution, so only the special dividend was Class A-onlybacksC38
- S09primarycompany filing2026-07-29the resignation of the executive vice president of Production Solutions effective 3 August 2026backsC37
- S10primarycompany filing2026-01-23the artificial lift product line covering every Flowco technology, the ChampionX acquisition and its strategic purpose, and $35.7B of 2025 revenue - the competitive field described by the competitorbacksC13
- S11primarycompany filing2026-02-26that 40% of Archrock's operating fleet serves gas lift applications - a listed rival's own account of the same product and the same buyersbacksC31
- S12primarycompany filing2026-02-26centralised gas lift named as a headline application and as an artificial lift technology, confirming the second cohort member from its own filingbacksC32
- S13primarycompany filing2026-02-25the buyer's own treatment of artificial lift as lease operating expense, and $114M of additional workover, artificial lift, maintenance and utility costs - evidence for why a buyer pays, from the party that paysbacksC30
- S14primarygovernment data2025-12-08the unit base for the prize, the horizontal share rising from 10% to 22%, and the 78% of wells producing 15 barrels of oil equivalent a day or less that the prize excludes
The number of producing wells in the United States reached a high of 1,031,161 wells in 2014 but declined to 930,445 wells by 2023 and continued to decline in 2024 to 918,481 wells. The percentage share of horizontal wells during the past decade increased from 10% in 2014 to 22% in 2024. The share of U.S. oil and natural gas wells producing 15 BOE/d or less remained steady at about 80% from 2000 through 2022 and declined to 78% in 2023 through 2024.
backsC27 - S15primarygovernment data2026-04-04the direction of the methane rules behind vapour recovery demand - loosening, on 4 April 2026, against the tightening Flowco's 10-K describes
EPA estimates this action will save the oil and natural gas industry $2.5 billion from 2024 to 2038
backsC28 - S16primarygovernment data2026-09-09the production rate behind the driver - 13.8 million barrels a day in 2026 against a forecast 14.3 million in 2027
U.S. crude oil production (million barrels per day) 13.8 … U.S. crude oil production (million barrels per day) 14.3
backsC29 - S17secondaryvendor data2026-09-26Flowco research pack, frozen at content/FLOC/research-pack.jsonprice, enterprise value, the two-member filed competitor cohort and its multiples, FINRA short interest by settlement, the analyst rating series and the insider windowbacksC18C20C21
- S18primarycompany filing2026-07-02the explanatory note establishing that the amendment corrects omitted certification language only and is not a restatementread, but no claim rests on it
- S19primarycompany filing2026-03-27executive biographies, beneficial ownership as of March 23, 2026, the loss of controlled-company status and the stockholders agreement, the 2025 short-term incentive goals and payout, the IPO restricted stock unit grantsbacksC49C50C51
- S20primarycompany filing2026-10-02the closing of the Lifting Solutions acquisition for about $113M in cash on the ABL facility, the contingent payment of up to C$10M on 2027 performance, and management's estimate of about $23M of 2027 adjusted EBITDA, about 5.0 timesbacksC53