Houston-based Flotek Industries Inc. has acquired power generation assets from ProFrac Holding Corp. for $105 million, the service and supply firm said April 28.

The assets include digitally enhanced mobile natural gas conditioning and distribution units to provide real-time gas monitoring and dual fuel optimization.

The technology will be applied to remote, behind-the-meter power generation across multiple markets, Flotek said.

“Our innovative, real-time measurement technologies are integrated into the acquired assets, safeguarding critical power generation fleets and measuring fuels for custody transfer,” said Ryan Ezell, Flotek CEO.

The transaction will be funded by offsetting $17.6 million from 2024 order shortfall payments due from ProFrac; $40.2 million of equity in the form of 6 million Flotek shares; a $40 million secured promissory note; and offsetting future potential order shortfalls against the purchase price, the release stated.

The companies also entered a six-year dry lease agreement for the assets, Flotek said.

The lease agreement provides for fixed rates during the first five years, and prevailing market rates during the sixth year.

Twenty-two assets will be placed into rental service immediately and eight additional units are expected to be added throughout the second half of 2025.

The lease agreement is expected to generate Flotek approximately $14 million in high-margin rental revenue, representing a 60% increase in segment revenue compared to 2024.

Beginning in 2026, annual revenue under the agreement is expected to total $27.4 million, the company said.

 “Importantly, we believe these transactions provide stable cash flow attributable to our high-growth Data Analytics segment and will be accretive to our shareholders while honoring our commitment to maintaining a low leverage profile,” Ezell said. 

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