Flotek Industries Provides Update on Puerto Rico Power Project and Reaffirms its Full-Year 2026 Guidance

As previously disclosed, on August 4, 2026, the Company raised its full-year 2026 financial guidance following record second-quarter performance. The updated outlook targets total revenue of $340 million to $350 million and Adjusted EBITDA⁽¹⁾ of $47 million to $51 million, excluding any potential contributions from the PREPA Contract.

As previously disclosed on August 3, 2026, Flotek entered into a 10-year agreement to provide power-generation equipment and its proprietary PWRtek gas-conditioning, distribution and real-time monitoring systems in support of the proposed 400-megawatt project at the Aguirre Power Plant. The Company has filed a Current Report on Form 8-K today with the Securities and Exchange Commission providing a factual update on the current status of the PREPA Contract in light of the developments further discussed below.

Flotek joined the project after the original procurement and execution of the PREPA Contract between the Puerto Rico Electric Power Authority ("PREPA") and the initially selected consortium. Before Flotek assumed its defined project responsibilities, the Company was advised that questions regarding the authorization of certain signatures associated with the PREPA Contract had been raised and had been fully vetted through the procurement process. PREPA and the Third-Party Procurement Office subsequently reviewed Flotek's qualifications, approved its participation and authorized the substitution through which Flotek assumed the applicable project responsibilities on July 31, 2026.

The Financial Oversight and Management Board for Puerto Rico (the "Oversight Board") has announced that its members have voted to direct PREPA to terminate the PREPA Contract. On August 17, 2026, PREPA issued a directive to all consortium parties, including the Company, to immediately hold all work related to the development of the project pending PREPA's evaluation of these developments. In addition, on August 17, 2026, a firm with an admitted short interest position in the Company published a report making allegations about the Company's business that we believe was intended to drive down the market price of the Company's common stock. As of the date of this release, PREPA has not delivered a formal notice of termination of the PREPA Contract to the Company.

The timing and ultimate scope of Flotek's participation remain subject to resolution of the PREPA Contract matter, satisfaction of applicable contractual conditions, financing and bonding requirements, governmental and regulatory approvals, and the project proceeding to deployment. No assurance can be given that the project will proceed as originally contemplated, that the work stoppage will be lifted, that the Oversight Board's revocation will be reversed or modified, or that the Company will realize any or all of the expected revenues under the PREPA Contract.

1. We are unable to reconcile this forward-looking non-GAAP financial measure to the most directly comparable GAAP financial measure without unreasonable efforts, as we are unable to predict with a reasonable degree of certainty the impact of certain items that would be expected to impact the GAAP financial measure, including, among other items, certain stock-based compensation costs and interest costs related to fluctuations in borrowings under the Company's asset based loan. These items do not impact the non-GAAP financial measure. Guidance does not add back non-cash amortization of contract assets estimated to total approximately $9 million during full-year 2026.

About Flotek Industries, Inc.

Flotek Industries, Inc. is a leading chemistry and data technology company focused on servicing the Energy industry. The Company's technologies leverage near real-time data to deliver innovative solutions to maximize customer returns. Flotek has an intellectual property portfolio of over 130 patents, over 20 years of field and laboratory data, and a global presence in more than 59 countries.

Flotek has established collaborative partnerships focused on sustainable and optimized chemistry and data solutions, aiming to reduce the environmental impact of energy on land, air, water and people.

Flotek is based in Houston, Texas and its common shares are traded on the New York Stock Exchange under the ticker symbol "FTK." For additional information, please visit www.flotekind.com.

Forward-Looking Statements

Certain statements contained in this press release constitute forward-looking statements within the meaning of applicable federal securities laws. These statements include, without limitation, statements regarding the status of the PREPA Contract, the Company's potential participation in the project, the timing and scope of any equipment deployment, and the revenues, operating results or other benefits that may be realized from the project.

Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied, including the outcome of governmental, regulatory, contractual or law-enforcement reviews; termination, modification or invalidation of relevant agreements; actions taken by the Oversight Board, PREPA, or law enforcement agencies; disputes among project participants; the ability of project participants to secure financing, bonding, fuel, permits and governmental approvals; interconnection and construction requirements; project delays; and other risks described in Flotek's filings with the Securities and Exchange Commission.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. Flotek undertakes no obligation to update any forward-looking statement except as required by law.

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SOURCE Flotek Industries, Inc.