Flotek Industries Inc.
08/19/2026 | Press release | Distributed by Public on 08/19/2026 07:27
Material Event (Form 8-K)
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Item 8.01
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Other Events.
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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.
Flotek Industries Inc. published this content on August 19, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on August 19, 2026 at 13:28 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]