Flotek Industries Inc. Makes Strategic Acquisition in Power Generation

In a significant move that underscores its commitment to expanding its technological footprint, Flotek Industries Inc. has announced the acquisition of power generation assets from ProFrac GDM, LLC, a subsidiary of ProFrac Holding Corp., for $105 million. This strategic acquisition, announced on April 28, 2025, positions Flotek at the forefront of innovation in mobile power generation, enhancing its portfolio in the energy sector.

Flotek, a specialty chemistry and data company listed on the New York Stock Exchange, is renowned for its contributions to the materials sector, particularly in developing and manufacturing sanitizers and disinfectants. However, its recent acquisition marks a significant pivot towards leveraging its expertise in real-time data platforms and chemistry technologies within the energy industry.

The acquired assets include digitally enhanced mobile natural gas conditioning and distribution units. These units are designed to provide real-time gas monitoring and dual fuel optimization for remote, behind-the-meter power generation. This acquisition not only broadens Flotek’s service offerings but also aligns with its strategic vision of providing turnkey solutions that leverage its real-time measurement technology to treat and optimize fuels used in remote power generation applications.

In addition to the acquisition, Flotek has entered into a six-year dry lease agreement with ProFrac GDM for the acquired assets. This agreement is structured to provide fixed rates during the first five years, ensuring a stable revenue stream for Flotek. The deal is expected to generate a $160 million revenue backlog and immediate earnings accretion for Flotek, signaling a robust financial outlook for the company.

This acquisition is a testament to Flotek’s strategic foresight and its commitment to innovation. By integrating these power generation assets into its portfolio, Flotek not only diversifies its offerings but also strengthens its position in the energy sector. The company’s ability to leverage its existing technologies in new and innovative ways is a clear indicator of its potential for sustained growth and success.

As Flotek Industries Inc. continues to expand its footprint in the energy sector, this acquisition is poised to play a pivotal role in its strategic growth plans. With a market capitalization of $217.44 million and a price-to-earnings ratio of 21.56, Flotek’s recent move is expected to bolster investor confidence and contribute to its long-term value creation.

For more information on Flotek Industries Inc. and its suite of products and services, interested parties are encouraged to visit their website at www.flotekind.com . This acquisition marks a significant milestone in Flotek’s journey towards becoming a leader in the integration of chemistry technologies and real-time data platforms across multiple industries.