Flotek's $400M Puerto Rico Power Contract Faces Revocation and Work Stoppage
FTK has more than doubled off its 52-week low of $10.95 on elevated volume (6.7× avg).
Summary
Flotek's major Puerto Rico power contract is at risk after the Oversight Board revoked approval and PREPA halted work, citing fraud allegations. The company reaffirmed 2026 guidance that excludes the contract, but the $400 million potential backlog is now uncertain.
Key Events · Legal and Risk Events · FTK
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Oversight Board Revokes Contract Approval
The Financial Oversight and Management Board for Puerto Rico voted to revoke approval of the PREPA Contract and directed PREPA to terminate it, stating the contract no longer complies with its review policy.
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PREPA Halts All Project Work
On August 17, 2026, PREPA issued a directive to all consortium parties, including Flotek, to immediately hold all work pending evaluation of the developments.
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Fraud Allegations Surface
The Oversight Board cited a statement by ERock Inc. that Enchanted Rock's name and signature were used without authorization. Procurement allegations were referred to the Puerto Rico Department of Justice and federal authorities.
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Short Seller Report Published
On August 17, 2026, a firm with an admitted short interest published a report making allegations about Flotek's business, which the company believes was intended to drive down the stock price.
Analysis · FTK · Industrial Applications And Services
The Oversight Board revoked approval of the PREPA Contract and directed PREPA to terminate it, citing unauthorized use of Enchanted Rock's name. PREPA has halted all work. The contract represented a potential $400 million revenue backlog over 10 years, though it was excluded from 2026 guidance. The company faces significant uncertainty about whether any revenue will materialize, and a short seller report adds pressure.
At the time of this filing, FTK was trading at $25.94 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $1B. The 52-week trading range was $10.95 to $39.67. This filing was assessed with negative market sentiment and an importance score of 9 out of 10.