FTK Clocks Worst Day In Over 6 Years After Wolfpack Research Flags Canceled Deal, Shorts Stock
Wolfpack Research, a short seller, says Puerto Rico’s Financial Oversight and Management Board revoked approval of a Power Expectations-led emergency power project on Aug. 14, canceling Flotek Industries’ $400 million role. Wolfpack claims the deal was about 57% of Flotek’s near-term backlog and faults Flotek’s disclosure. FTK shares fell about 20% on Monday.
How this was made
The 30-second read
Why it matters
If the Oversight Board’s revocation leads to formal termination, FTK faces backlog write-down risk and potential disclosure scrutiny, pressuring valuation and liquidity.
Market read
A regulatory revocation tied to FTK’s specific contract role is driving a sharp repricing and raises immediate questions about backlog, disclosure, and potential criminal referral.
What to watch
The article does not include FTK’s response or any official contract termination notice details beyond the report’s claims, so confirmation risk is high.
Background
Wolfpack Research, a short seller, alleges Flotek’s Puerto Rico power deal was canceled and that Flotek failed to update investors after red flags emerged.
Ticker impact
Flotek’s $400 million Puerto Rico power role is alleged canceled after Puerto Rico’s Oversight Board revoked approval of the larger project.
Bearish bias with elevated volatility until FTK confirms disclosures and any replacement contract path.
The article ties the Oversight Board’s Aug 14 action to FTK’s specific $400 million role and cites Wolfpack’s claim that the deal was 57% of near-term backlog.
Market effects
Highlights counterparty and regulatory approval risk for infrastructure/power EPC-style projects tied to Puerto Rico.
Reinforces uncertainty around Puerto Rico power procurement and oversight-board enforcement actions.
Limited beyond US-listed infrastructure contractors with Puerto Rico exposure.
Counterpoint
FTK may dispute the short-seller characterization, and the project could be restructured rather than fully terminated, limiting long-term damage.
Key entities
- companyFlotek Industries Inc.
US-listed subject whose $400 million Puerto Rico power role is alleged canceled and whose stock fell 20% on the report.
- short_sellerWolfpack Research
Short seller claiming the deal was canceled and that it represented 57% of Flotek’s near-term backlog.
- regulatorFinancial Oversight and Management Board (Puerto Rico)
Federally appointed board that revoked approval of the larger Power Expectations-led emergency power project on Aug 14.
- counterpartyPower Expectations
Partner in the larger emergency power project; criticized for limited size/experience and CEO background allegations.
- utilityPuerto Rico Electric Power Authority
Ordered to terminate the roughly $6 billion agreement per the report.
