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Flotek (NYSE: FTK) sees $400M Puerto Rico power deal scrapped

(Very High)
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Flotek Industries, Inc. (FTK) reports that the Puerto Rico Electric Power Authority (PREPA) has delivered formal notice terminating the Power Purchase and Operating Agreement (PPOA) and the related PREPA Contract, effective immediately. Flotek had been assigned certain contractual responsibilities under this agreement in July 2026.

The PREPA Contract contemplated a 10-year term, with deployment of up to six pairs of PWRtek smart conditioning and distribution skids and up to 40 MW of primary power generation capacity within a 400 MW natural gas-fired project. At full deployment, Flotek had expected approximately $40 million in annual revenue and a potential $400 million 10-year revenue backlog from this contract. Flotek states that it has not generated any revenue, received any payments, or commenced equipment deployment under the PREPA Contract, and that the termination does not affect its previously issued 2026 financial guidance, which excluded any contribution from this project.

Positive

  • None.

Negative

  • Termination of PREPA Contract removes an expected $40 million annual revenue stream and $400 million potential 10-year backlog opportunity.

Filing Explained

The termination rested on two stated grounds: the consortium’s failure to provide required performance security on time and the Oversight Board’s revocation of approval, coupled with its direction to PREPA to terminate.

Item 8.01 Other Events Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Annual revenue at full deployment $40 million Expected annual revenue under the PREPA Contract at full deployment
Potential 10-year revenue backlog $400 million Potential 10-year revenue backlog from the PREPA Contract
Contract term 10 years Duration of Flotek’s agreement to support PREPA initiatives
Primary power capacity 40 MW Up to 40 MW of primary power generation capacity to be deployed by Flotek
Project total capacity 400 MW Total natural gas-fired power generation capacity for the PREPA project
Smart skid pairs 6 pairs Up to six pairs of smart conditioning and distribution skids under the PREPA Contract
Power Purchase and Operating Agreement financial
"termination of the Power Purchase and Operating Agreement, Contract No. 2026-P00107"
performance security financial
"event of default based on the consortium’s failure to furnish the required performance security"
Financial Oversight and Management Board for Puerto Rico regulatory
"compliance with the Financial Oversight and Management Board for Puerto Rico’s formal revocation"
forward-looking statements financial
"Certain statements set forth in this on constitute forward-looking statements"
Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.
revenue backlog financial
"potential 10-year revenue backlog of approximately $400 million"
Revenue backlog is the total value of confirmed sales, contracts, or orders that a company has committed to deliver but has not yet recognized as revenue; think of it as a queue of future income the business has already promised to customers. Investors care because backlog shows near-term sales visibility and growth potential—like knowing how many jobs are already scheduled—and it helps assess whether reported results are likely to continue, slow, or be at risk from cancellations or delays.

FAQ

What did Flotek Industries (FTK) announce regarding its PREPA Contract?

Flotek reported that PREPA delivered formal notice terminating the Power Purchase and Operating Agreement and related PREPA Contract, effective immediately. The agreement had been recently assigned to Flotek and covered long-term support for a natural gas-fired power project.

How large was the PREPA Contract opportunity for FTK in revenue terms?

At full deployment, Flotek expected approximately $40 million in annual revenue and a potential $400 million 10-year revenue backlog from the PREPA Contract. These figures reflected anticipated deployment of its PWRtek platform within a 400 MW power project.

Did Flotek (FTK) earn any revenue before the PREPA Contract was terminated?

No. Flotek states it did not generate any revenue, receive any payments, or commence deployment of equipment under the PREPA Contract before PREPA’s termination notice. The project remained in a pre-deployment stage when the agreement was ended.

What impact does the PREPA Contract termination have on FTK’s 2026 financial guidance?

Flotek states the termination does not affect its previously issued 2026 financial guidance. That guidance did not include any potential contribution from the PREPA Contract, so the loss of this opportunity does not change the company’s published outlook.

What project scope was contemplated under Flotek’s PREPA Contract?

The contract contemplated deploying up to six pairs of smart conditioning and distribution skids as part of Flotek’s PWRtek platform, plus up to 40 MW of primary power within a 400 MW natural gas-fired power generation project supporting PREPA’s grid.

On what grounds did PREPA state it was terminating the PPOA with Flotek’s consortium?

PREPA’s notice states two grounds: an event of default related to failure to furnish required performance security within the contractual timeframe and compliance with the Oversight Board’s revocation of approval of the PPOA and direction to terminate the contract.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Learn about SEC filing dates
0000928054FALSE00009280542026-08-192026-08-19

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

August 18, 2026
Date of Report (Date of earliest event reported)

Flotek Industries, Inc.
(Exact name of registrant as specified in its charter)

Delaware001-1327090-0023731
(State or Other Jurisdiction of Incorporation)(Commission File Number)(IRS Employer Identification No.)
5775 N. Sam Houston Parkway W., Suite 400 Houston, TX, 77086
(Address of principal executive office and zip code)

(713) 849-9911
(Registrant’s telephone number, including area code)

(Not applicable)
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each classTrading Symbol(s)Name of Exchange on which registered
Common Stock, $0.0001 par valueFTKNYSE

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐





Item 8.01
Other Events.
On August 18, 2026, the Puerto Rico Electric Power Authority (“PREPA”) delivered formal notice of termination of the Power Purchase and Operating Agreement, Contract No. 2026-P00107, dated June 10, 2026 (the “PPOA”), effective immediately. Flotek Industries, Inc. (the “Company”) had been assigned certain contractual responsibilities under the PPOA previously held by Enchanted Rock, LLC, with PREPA’s consent on July 31, 2026 (as previously disclosed, the “PREPA Contract”).
PREPA’s notice states that it is terminating the PPOA on two independent grounds: (i) an event of default based on the consortium’s failure to furnish the required performance security within the contractually required timeframe and (ii) compliance with the Financial Oversight and Management Board for Puerto Rico’s (the “Oversight Board”) formal revocation of approval of the PPOA and express direction to PREPA to terminate the contract.
As previously disclosed in the Company’s Current Reports on Form 8-K filed on August 3, 2026 and August 18, 2026, the Company had entered into a 10-year agreement to support natural gas-fired grid enhancement initiatives for PREPA. Under the PREPA Contract, the Company expected to deploy up to six pairs of smart conditioning and distribution skids as components of its proprietary PWRtek platform, along with up to 40 MW of primary power generation capacity, as part of a 400 MW natural gas-fired power generation project. At full deployment, annual revenue under the PREPA Contract was expected to total approximately $40 million, with a potential 10-year revenue backlog of approximately $400 million.
The Company did not generate any revenue or receive any payments under the PREPA Contract and had not commenced deployment of equipment. The termination does not affect the Company’s previously issued 2026 financial guidance, which did not include any potential contribution from the PREPA Contract.
Forward-Looking Statements
Certain statements set forth in this Current Report on Form 8-K constitute forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934). These statements include, without limitation, statements regarding the Company’s business, financial condition, results of operations and prospects, as well as statements regarding the expected revenues to be received under the PREPA Contract, the total term of the PREPA Contract, the timing of the scaling and deployment of the equipment under the PREPA Contract, the total power capacity and operating performance of the equipment once deployed, the Company’s ability to perform under and satisfy the terms and conditions of the PREPA Contract, and the potential outcomes of the developments described herein. Words such as “will,” “continue,” “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions or variations of such words are intended to identify forward-looking statements, but are not the exclusive means of identifying forward-looking statements in this report. Although forward-looking statements in this report reflect the good faith judgment of management, such statements can only be based on facts and factors currently known to management. Consequently, forward-looking statements are inherently subject to risks and uncertainties, and actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. Further information about the risks and uncertainties that may impact the Company are set forth in the Company’s most recent filings with the Securities and Exchange Commission on Forms 10-K and 10-Q (including, without limitation, in the “Risk Factors” sections thereof), and in the Company’s other SEC filings and publicly available documents. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this report. The Company undertakes no obligation to revise or update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this report.



Item 9.01
Financial Statements and Exhibits.
d) Exhibits.
Exhibit NumberDescription
104Cover Page Interactive Data File (embedded within the Inline XBRL document)



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

FLOTEK INDUSTRIES, INC.
Date: August 19, 2026
/s/ Bond Clement
Name:Bond Clement
Title:Chief Financial Officer

Filing Exhibits & Attachments

4 documents