Flotek Industries, Inc. (NYSE: FTK) said the Financial Oversight and Management Board for Puerto Rico has voted to direct the Puerto Rico Electric Power Authority (PREPA) to terminate a 10-year power generation contract in which Flotek holds project responsibilities.

On Aug. 17, 2026, PREPA issued a directive to all consortium parties, including Flotek, to halt all work related to the project pending PREPA's evaluation of the situation. As of the date of the company's statement, PREPA had not delivered a formal notice of termination to Flotek.

Flotek assumed its role in the project on July 31, 2026, joining an existing consortium to support a proposed 400-megawatt project at the Aguirre Power Plant. The company's participation involved providing power-generation equipment and its PWRtek gas-conditioning, distribution and real-time monitoring systems. Prior to Flotek's entry, questions had been raised about certain signatures associated with the original contract, which PREPA and its Third-Party Procurement Office reviewed before approving Flotek's substitution.

On Aug. 17, 2026, a firm disclosing a short interest position in Flotek published a report making allegations about the company's business. Flotek stated it believed the report was intended to drive down the market price of its common stock.

Flotek said the PREPA contract had not been included in its 2026 financial guidance, which remains unchanged. The company reaffirmed its full-year 2026 outlook of total revenue between $340 million and $350 million and Adjusted EBITDA of $47 million to $51 million. That guidance was raised on Aug. 4, 2026, following what the company described as record second-quarter performance.

Flotek filed a Current Report on Form 8-K with the Securities and Exchange Commission providing a factual update on the contract status. The company said no assurance can be given that the project will proceed, that the work stoppage will be lifted, or that the Oversight Board's revocation will be reversed.