Wolfpack Research says Flotek ignored alleged red flags in Puerto Rico deal
Flotek Industries is facing mounting pressure after short‑seller Wolfpack Research published a scathing report alleging the Houston‑based oilfield services company failed to disclose that its $400 million Puerto Rico power‑generation contract, representing more than half of its projected backlog, has been canceled.
The report, released August 17, accuses Flotek, which succeeded Enchanted Rock, or ERock, in the contract, of ignoring a series of glaring warning signs tied to its local partner, Power Expectations, and of withholding material information from investors even after federal regulators publicly questioned the contract’s legitimacy.
The Financial Oversight and Management Board revoked approval of the Power Expectations contract on August 14, directing PREPA to terminate the agreement and referring the matter to law enforcement authorities. The Board said the procurement was “irreparably impaired” after ERock Inc., the holding company of Enchanted Rock, declared that its name and signature were used without authorization in the bidding process. Enchanted Rock’s participation had been a critical factor in the Board’s approval, and its withdrawal left the consortium without the technical and financial capacity to execute the 400-megawatt project.
Wolfpack Research argues that Flotek should have disclosed the cancellation immediately, noting that the Oversight Board’s concerns became public on August 7. Instead, Flotek continued to tout the contract in investor communications, including an earnings call where executives described the Puerto Rico project as a cornerstone of the company’s future growth and a key driver of its expanded backlog.
“FTK shares soared 35% after announcing this deal,” the report states, adding that the company’s updated guidance relied heavily on the expected revenue from the PREPA contract. Wolfpack claims Flotek “appears to have been scammed” and failed to conduct basic due diligence on Power Expectations and its representatives.
The report highlights allegations that the signature used to bind Enchanted Rock to the contract was provided by “Jhoby Weaks,” whom local media outlets have identified as Jobadiah “Joby” Weeks, a Colorado man who pleaded guilty in a $722 million fraud and tax‑evasion scheme and is reportedly under house arrest. Wolfpack also points to the criminal history of Power Expectations CEO Eddie Echevarría, citing multiple arrests and a 2015 felony conviction for resisting an officer with violence. Echevarría has denied any wrongdoing.
These issues were not unknown in Puerto Rico. The Public‑Private Partnerships Authority and Energy Czar Josué Colón referred the matter to the Puerto Rico Department of Justice and federal authorities. Third‑Party Procurement Office director Osvaldo Carlo later confirmed the federal referral and said he tracked Weaks to Colorado, though attempts to reach him were unsuccessful. Caribbean Business attempted to contact Weaks at an email address listed in the contract, but the message bounced.
Wolfpack argues that Flotek either missed or ignored these developments, as well as earlier warnings from the Oversight Board. In February 2026, the Board questioned Power Expectations’ ability to execute the contract, noting that the company’s reported revenues were just $17 million, compared to an estimated $1.2 billion annual value of the temporary generation project, and that it lacked the organizational and financial capacity to sustain performance over a ten‑year term.
Flotek was not part of the original consortium. According to the Oversight Board, Power Expectations informed PREPA that Enchanted Rock wished to withdraw just two days after the contract was signed, and that its interests were being assigned to Flotek. The Board said this substitution did not resolve the underlying deficiencies in the procurement record.
Wolfpack’s report raises questions about Flotek’s disclosures to investors, noting that the company continued to promote the Puerto Rico contract as a major growth driver even after the Oversight Board publicly disclosed the unauthorized signature allegation. “This disaster is an embarrassment for FTK’s management,” the report states, “but their failure to disclose the matter raises even more concerning questions.”
Flotek has not publicly responded to the report. The company’s stock, which surged after the contract announcement, now faces uncertainty as investors digest the implications of losing a deal that accounted for roughly 57% of its projected backlog.
With federal authorities investigating the procurement, the Oversight Board ordering PREPA to terminate the contract, and Power Expectations itself embroiled in a public dispute over the legitimacy of its partnership with Enchanted Rock, Flotek’s entry into Puerto Rico’s energy market has quickly shifted from a touted growth opportunity to a reputational and financial liability.
