Flotek Industries, Inc. announced the acquisition of power generation assets and related intellectual property from ProFrac GDM, LLC, a subsidiary of ProFrac Holding Corp., for $105 million. Concurrently, Flotek entered into a six-year dry lease agreement for these acquired assets with ProFrac GDM.
The acquired assets include digitally enhanced mobile natural gas conditioning and distribution units designed for real-time gas monitoring and dual fuel optimization in remote power generation applications. This acquisition provides Flotek with a turnkey solution, integrating its real-time measurement technology to treat and optimize fuels.
The lease agreement is expected to provide over $160 million in recurring revenue backlog, with fixed rates for the first five years. Twenty-two assets were immediately placed into rental service, and an additional eight units are anticipated to be added throughout the second half of 2025. The consideration for the $105 million transaction included $40 million in cash, a $40 million note payable to ProFrac GDM, and a $25 million warrant to purchase 6 million shares of Flotek common stock.
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