Aug. 17 at 8:10 PM
Flotek Industries shares plunged after short seller Wolfpack Research announced a short position and alleged that the company’s key 10-year,
$400 million contract with PREPA and Power Expectations was canceled after an unauthorized signature was discovered and referred for a criminal investigation. The claims directly challenge Flotek’s near-term revenue outlook, which had been boosted by the PREPA deal announced earlier this month.
Wolfpack estimates the alleged cancellation could eliminate roughly 57% of Flotek’s short-term backlog, raising questions about its recently issued 2026 revenue guidance of
$340 million-
$350 million, released alongside stronger-than-expected Q2 results. The report also raised broader corporate-governance concerns, prompting investors to rapidly reassess the company’s risk profile.
The broader market provided little support, with the S&P 500 down 0.4%, Dow Jones down 0.5% and Nasdaq down 0.3%.
$FTK