Green chemistry solutions provider Flotek Industries, Inc. (NYSE: FTK) and hydraulic fracturing services firm ProFrac Holdings have signed an agreement to extend a long-term supply deal with an affiliate of ProFrac.
Flotek expects the extension to add around $1 billion to $2.1 billion to its revenue backlog over the next decade.
The transaction is expected to close in the second quarter of this year.
Based out of Texas, Flotek creates solutions to reduce the environmental impact of energy on air, water, land, and people. It develops and supplies chemistry solutions and services to the oil and gas industries, and companies that make cleaning products, cosmetics, food, and beverages.
FTK stock gained 16.3% on Friday to close at $1.57.
Wall Street’s Take
At the beginning of this month, Michael Heim from Noble Financial reiterated a Buy rating on the stock with a price target of $2.50 (59.2% upside potential).
Overall, the stock has a Moderate Buy consensus rating based on 1 Buy. The average Flotek Industries price target of $2.50 implies 59.2% upside potential. Shares have gained 44% year-to-date.
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