The deal will generate $40 million in revenue for the Texas firm
Flotek Industries has secured a decade‑long agreement to supply natural‑gas generation and fuel‑management technology for a 400‑megawatt emergency power project led by the Puerto Rico Electric Power Authority (PREPA), marking one of the company’s largest long‑term utility contracts.
The Houston‑based firm, which has been repositioning itself as a data‑driven technology provider for critical infrastructure, expects the deal to generate roughly $40 million in annual revenue once fully deployed, creating a potential backlog of about $400 million over the 10‑year term. The project is part of PREPA’s ongoing effort to stabilize Puerto Rico’s fragile grid, which continues to suffer from aging infrastructure, slow modernization, and recurring island‑wide outages, according to a Flotek statement.
Flotek is partnering with Power Expectations LLC, the group overseeing PREPA’s Emergency Temporary Power Generation initiative, known as RFP 3PPO‑0314‑20‑TGP2. The program aims to install 400 MW of natural gas‑fired generation as a stopgap measure while longer‑term grid reconstruction and renewable energy projects advance.
Under the agreement, Flotek will provide its proprietary PWRtek platform — a suite of real‑time analytics, fuel‑conditioning systems, and distribution skids designed to optimize behind‑the‑meter generation. The company will also supply up to 40 MW of primary generation equipment, which will operate as part of the broader 400 MW deployment.
According to the company, the PWRtek systems will manage fuel quality, pressure regulation, and engine performance across the project, improving uptime and operational efficiency. Support equipment is scheduled to begin arriving in Puerto Rico in late 2026, with the first generation units and conditioning skids expected by the end of the first quarter of 2027.
Flotek CEO Ryan Ezell said the award reflects the company’s strategic shift toward recurring, high‑margin technology services beyond traditional oilfield chemistry. “Our transformative PWRtek platform has evolved from advanced analytics into a comprehensive end‑to‑end fuel management and optimization solution,” Ezell said. “This opportunity in the utilities sector further validates the strong demand for our platform and reinforces our pivot toward long‑term, technology‑driven revenue streams.”
The contract represents roughly 10 percent of the total project scope, meaning Flotek’s revenue expectations depend on the successful execution of the full 400 MW initiative — a complex undertaking that requires fuel procurement, permitting, interconnection, financing, and coordination among multiple contractors. The company acknowledged that Puerto Rico’s regulatory environment, weather risks, and infrastructure constraints could affect timelines and performance.
Flotek plans to discuss the contract further during its second‑quarter earnings call on August 5. The company, which trades on the NYSE under the ticker FTK, operates in more than 59 countries and holds a portfolio of over 130 patents tied to chemistry and data‑optimization technologies.
For Puerto Rico, the emergency generation project is one of several stopgap measures aimed at stabilizing the grid as PREPA and LUMA Energy continue navigating reconstruction delays, regulatory disputes, and the transition toward federally mandated renewable energy targets. The addition of natural gas‑fired temporary generation is expected to provide short‑term reliability while longer‑term infrastructure investments move forward.
