PREPA Terminates Flotek's $400M Puerto Rico Power Contract
FTK has more than doubled off its 52-week low of $10.95 on elevated volume (2.8× avg).
Summary
Flotek's 10-year, $400M Puerto Rico power contract was formally terminated by PREPA on August 18, 2026. The company had not yet generated revenue from the contract and says 2026 guidance is unaffected.
Key Events · Legal and Risk Events · FTK
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PREPA Terminates $400M Contract
PREPA delivered formal notice of termination of the PPOA effective immediately on August 18, 2026, citing failure to furnish performance security and the Oversight Board's revocation of approval.
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No Revenue or Payments Received
Flotek confirms it did not generate any revenue or receive any payments under the PREPA Contract and had not commenced deployment of equipment.
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2026 Guidance Unaffected
The termination does not affect previously issued 2026 financial guidance, which did not include any potential contribution from the PREPA Contract.
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Contract Was Major Growth Opportunity
Under the PREPA Contract, Flotek expected up to $40M in annual revenue and a potential $400M 10-year revenue backlog from deploying PWRtek skids and 40 MW of power generation capacity.
Analysis · FTK · Industrial Applications And Services
The Power Purchase and Operating Agreement was formally terminated by PREPA effective immediately, with the utility citing failure to furnish performance security and the Oversight Board's revocation of approval. Flotek had anticipated up to $40M in annual revenue and a $400M 10-year backlog from this contract. The company confirms it received no revenue or payments and had not deployed equipment, and the termination does not affect 2026 guidance. This removes a major growth catalyst but avoids near-term operational disruption.
At the time of this filing, FTK was trading at $27.65 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $978.7M. The 52-week trading range was $10.95 to $39.67. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.