Flotek Industries, Inc. filed a Form 8-K on August 19, 2026, disclosing that the Puerto Rico Electric Power Authority delivered formal notice of immediate termination of a power purchase and operating agreement assigned to Flotek in July 2026.

Key Highlights

  • Termination effective immediately: PREPA terminated Contract No. 2026-P00107, dated June 10, 2026, on August 18, 2026, citing two independent grounds.
  • Two stated grounds for termination: A consortium failure to furnish required performance security within the contractually required timeframe, and the Financial Oversight and Management Board for Puerto Rico's formal revocation of approval and express direction to PREPA to terminate.
  • No revenue generated: According to the filing, the company did not generate any revenue or receive any payments under the PREPA Contract and had not commenced deployment of equipment.
  • Projected revenue now lost: The filing states that 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.
  • 2026 guidance unaffected: The company disclosed that the termination does not affect its previously issued 2026 financial guidance, which did not include any potential contribution from the PREPA Contract.
  • PWRtek platform involved: Under the contract, the company had 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.

Flotek's PREPA Contract Assignment and Subsequent Termination

Flotek Industries (NYSE:FTK) disclosed in an Item 8.01 current report that PREPA delivered formal notice of termination of the Power Purchase and Operating Agreement, Contract No. 2026-P00107, on August 18, 2026, effective immediately. According to the filing, Flotek had been assigned certain contractual responsibilities under the agreement previously held by Enchanted Rock, LLC, with PREPA's consent on July 31, 2026.

The filing states that PREPA cited two independent grounds for the termination: first, an event of default based on the consortium's failure to furnish the required performance security within the contractually required timeframe; and second, compliance with the Financial Oversight and Management Board for Puerto Rico's formal revocation of approval of the agreement and its express direction to PREPA to terminate the contract. The filing describes the original contract as a 10-year agreement to support natural gas-fired grid enhancement initiatives for PREPA.

Flotek disclosed that the company had not commenced deployment of equipment and had not generated any revenue or received any payments under the PREPA Contract before the termination. The company stated that its previously issued 2026 financial guidance did not include any potential contribution from the PREPA Contract and therefore is not affected by the termination. The filing also noted that the company had previously disclosed related developments in Current Reports on Form 8-K filed on August 3, 2026, and August 18, 2026. The filing contains forward-looking statements that the company identifies as subject to risks and uncertainties, noting that actual results and outcomes may differ materially from those discussed.

What Was Disclosed

Flotek Industries reported the immediate termination of its PREPA power purchase agreement, citing a performance security default and regulatory revocation. The company stated no revenue was earned and that its 2026 guidance remains unchanged as the contract had not been included in it.