FTK - Flotek doubles as ProFrac contract extension seen boosting backlog by $1B

Flotek Industries (FTK +111.8%) skyrockets on news it has agreed to expand its long-term supply agreement with ProFrac Holdings, which the company says will boost its revenue backlog by at least $1B, and as much as $2.1B, over the next 10 years; shares resume trading after a halt. As part of the deal, Flotek agrees to issue to ProFrac notes convertible into common shares, with the amount of notes based on the size of expansion, and grant ProFrac the right to appoint two members to Flotek's board, for a total of four out of seven directors. Flotek is "nearing the end of its run as a public company," whose cash burn likely will "take it to zero in another couple of quarters," Fluidsdoc writes in a bearish analysis posted on Seeking Alpha.

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Flotek doubles as ProFrac contract extension seen boosting backlog by $1B