Flotek Industries Faces Uncertainty Over Puerto Rico Power Deal

The potential contract termination arrives shortly after Flotek joined the project on July 31, 2026, to provide gas-conditioning and monitoring systems. While the Oversight Board has signaled its intent to cancel the arrangement, Flotek maintains that it has not received a formal notice of termination. The company stated that its involvement in the project was vetted and approved by the Puerto Rico Electric Power Authority (PREPA) and the Third-Party Procurement Office prior to the recent intervention.

Despite the sudden halt in operations, Flotek reaffirmed its full-year 2026 financial guidance, which targets revenue between $340 million and $350 million. The company clarified that this outlook never factored in potential contributions from the PREPA contract, insulating its core financial projections from the current dispute. Alongside the project suspension, Flotek addressed a report published by a firm with an admitted short interest in the company, dismissing the allegations as a maneuver intended to depress its stock price. The ultimate status of the project remains tied to ongoing regulatory reviews, financing requirements, and the resolution of the contract dispute.