Core Viewpoint - ProPetro Holding Corp. (PUMP) reported a fourth-quarter 2024 adjusted loss per share of 1 cent, which aligns with the Zacks Consensus Estimate, showing improvement from a loss of 16 cents in the previous year due to a 4.8% decline in costs and expenses [1][4]. Financial Performance - Revenues for the quarter were $320.6 million, exceeding the consensus estimate of $314 million, driven by better-than-expected service revenues in the Wireline segment, which reached $45.2 million, surpassing estimates by 3.2%. However, this represents a 9.7% decrease from $347.8 million in the same quarter last year due to declines in service revenues from Hydraulic Fracturing, Wireline, and Cementing operations [2]. - Adjusted EBITDA was $52.7 million, down 25.9% from $71.1 million in the previous quarter and below the model estimate of $61.8 million [3]. - The company reported a net loss of $17 million for the quarter, significantly improved from a net loss of $137 million in the same quarter last year [4]. Cost Management - Total costs and expenses for the fourth quarter were $339 million, a 4.8% decrease from the prior-year quarter. The cost of services (excluding depreciation and amortization) was $243.5 million, down from $261 million in the previous year [7]. - General and administrative expenses were $28.6 million, slightly up from $28 million in the prior-year quarter, while depreciation and amortization decreased by 23.9% to $47.7 million [8]. Capital Expenditures and Cash Flow - Capital expenditures (CapEx) for the fourth quarter totaled $25 million, primarily for maintenance and support equipment related to the FORCE electric frac fleet. Net cash used in investing activities was $24 million [9]. - As of December 31, PUMP had $50.4 million in cash and cash equivalents and $45 million in borrowings under its ABL Credit Facility. Total liquidity stood at $161 million, including $111 million in available credit [10]. Share Buyback Program - Throughout 2024, the company repurchased and retired 7.2 million shares, with an additional 0.4 million shares repurchased in the fourth quarter, totaling 13 million shares, which is approximately 11% of outstanding common stock since the buyback plan began in May 2023 [4]. Future Guidance - For 2025, the company expects total capital spending to be between $300 million and $400 million, with $150 million to $200 million allocated to the completions business and a similar amount for growth investments in the PROPWR business. PUMP plans to finance a significant portion of the PROPWR CapEx and anticipates operating between 14 and 15 frac fleets in the first quarter of 2025 [12].

Core Insights - Z4 Energy Research has been recognized as a top performer, ranking in the top 2% of financial bloggers and top 5% of overall experts as of January 2021 [1] - The company has been providing energy market insights since 2006, with a focus on oil, natural gas, wind, solar, fuel cells, and other renewables [1] - Z4 Energy Research offers a comprehensive range of services, including weekly slide shows on oil and natural gas inventory reports and daily analyses on individual companies and energy segments [1] Company Services - The company posts content six days a week and has been active in the markets since the early 1990s [1] - Z4 Energy Research provides a trading history and insights on buying and selling activities, although it does not offer direct investment advice [1] - The site is fully searchable by ticker and topic, with content available dating back to 2006 [1]

Customer Dependence and Credit Risk - The company reported a significant reliance on a few large customers, which may adversely affect revenue and operating results[19] - The company relies on a few large customers, which may adversely affect revenue and operating results[19] - The company is exposed to credit risk from customers, and any material nonpayment could adversely affect business and financial conditions[22] Industry Cyclicality and Competition - The cyclical nature of the oil and natural gas industry has led to fluctuations in operating results, particularly influenced by capital spending from exploration and production companies[19] - The company may experience fluctuations in operating results due to the cyclical nature of the oil and natural gas industry[19] - The company faces significant competition, which has intensified due to customer consolidation and industry downturns, potentially affecting market share[22] - The company faces competition that may cause a loss of market share, intensified by customer consolidation and industry downturns[19] Operational Risks and Geographic Concentration - The company is vulnerable to risks associated with operating primarily in the Permian Basin, which could impact overall performance[19] - The majority of operations are concentrated in the Permian Basin, exposing the company to geographic risks[19] Technological Advancements - The company is implementing new technologies, including lower-emissions equipment, to enhance operational efficiency and meet evolving market demands[15] - The company is implementing new technologies, including Tier IV Dynamic Gas Blending dual-fuel and FORCE electric-powered hydraulic fracturing equipment[15] - The company is launching a new power generation business, which is expected to grow in the future[15] Financial and Capital Risks - The company’s operations require substantial capital, and inability to obtain financing on satisfactory terms could limit growth potential[19] - The company may face challenges in obtaining necessary capital or financing, which could limit growth opportunities[19] Regulatory and Geopolitical Risks - The Inflation Reduction Act of 2022 could accelerate the transition to a low carbon economy, potentially imposing new costs on customers' operations[19] - The Inflation Reduction Act of 2022 could impose new costs on customers' operations, potentially affecting demand for services[19] - The company is subject to risks from geopolitical conditions, including the potential impact of the 2024 presidential election and rising interest rates[12] Cyber Security Risks - The company is subject to cyber security risks, which could lead to operational disruptions and financial loss[22] - The company is exposed to cyber security risks, which could lead to operational disruptions and financial loss[22]

Financial Data and Key Metrics Changes - ProPetro reported a revenue decline of 11% from 2023, with a net loss of $17 million in Q4 2024, and adjusted EBITDA decreased by 26% sequentially to $53 million [23][26][30] - Free cash flow adjusted for acquisition consideration increased over nine times to $118 million [23] - Capital expenditures were reduced by 57% year-over-year, with Q4 2024 capital expenditures at $25 million [23][28] Business Line Data and Key Metrics Changes - The hydraulic fracturing segment maintained 14 active fleets, with expectations to run between 14 and 15 fleets in Q1 2025 [26][27] - The cementing and Aqua Prop sand logistics businesses continued to perform well, contributing to overall financial strength despite seasonal impacts [10][25] - The company is focusing on next-generation service offerings, with approximately 75% of the fleet consisting of gas-burning equipment [7] Market Data and Key Metrics Changes - The Permian Basin has approximately 85 full-time active frac fleets, with 90% of activity held by the top seven pressure pumping brands, indicating a consolidated market [11][12] - The company anticipates a flat activity environment in North America for 2025, with potential tightening in the frac market due to attrition among lower-end operators [62] Company Strategy and Development Direction - ProPetro is launching a new business line, Pro Power, aimed at expanding beyond traditional oilfield services and establishing itself as a premier energy solutions provider [13][15] - The company is committed to a dynamic capital allocation strategy, focusing on scaling Pro Power, investing in next-generation fleet transitions, and returning capital to shareholders [19][21] - The strategy emphasizes operational efficiency, disciplined capital allocation, and maintaining a strong balance sheet to support growth initiatives [18][32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the North American onshore oilfield services market, particularly for quality providers like ProPetro [11] - The company is positioned to capitalize on growth opportunities despite a challenging macro environment, with a focus on maintaining free cash flow generation [18][31] - Safety remains a priority, with management acknowledging recent incidents and emphasizing the importance of safety protocols [37] Other Important Information - The company has returned $111 million of capital to shareholders since the inception of its share repurchase program in May 2023 [24] - ProPetro's cash and liquidity position remains strong, with total liquidity at the end of Q4 2024 at $161 million [30] Q&A Session Summary Question: Can you provide insights on the incremental revenue and EBITDA generation from the Pro Power business? - Management indicated that the impact from the Pro Power business is expected to be more pronounced in 2026, with potential EBITDA generation of $300,000 to $400,000 per megawatt per year [40][44] Question: How do you see the pricing environment in the frac business? - Management noted that pricing remains relatively stable in their segment, attributing this to their focus on blue-chip E&P customers and high-efficiency operations [47][50] Question: What is the outlook for the Permian Basin's fleet activity in the coming quarters? - Management expects fleet activity to remain flat, with potential increases in efficiency leading to a higher effective fleet size compared to previous years [52][54] Question: What is the expected capital expenditure for 2025? - The company anticipates capital expenditures to range between $300 million and $400 million, with significant allocations for the Pro Power business [28][29] Question: How is the integration of AquaProp progressing? - Management reported positive efficiencies where AquaProp services are integrated, despite challenges in the sand market affecting growth opportunities [78][81] Question: How does the recent acquisition in the E&P sector affect ProPetro? - Management views consolidation in the Permian as healthy, providing opportunities for rational behavior and consistent demand for their services [84][86] Question: What are the operational risks associated with the Pro Power business? - Management is confident in their existing infrastructure and leadership to mitigate operational risks as they scale the Pro Power business [90][92]

Financial Performance - Revenue for the full year 2024 was $1.4 billion, an 11% decrease from 2023[4] - Net loss for the full year 2024 was $138 million, or $1.31 loss per diluted share, compared to net income of $86 million, or $0.76 income per diluted share in 2023[4] - Adjusted EBITDA for the full year 2024 was $283 million, a 30% decrease from 2023[4] - Service revenue for the three months ended December 31, 2024, was $320,554 thousand, a decrease of 11.2% from $360,868 thousand in the previous quarter[25] - The net loss for the year ended December 31, 2024, was $137,859 thousand, compared to a net income of $85,634 thousand in 2023[28] - Adjusted EBITDA for the three months ended December 31, 2024, was $52,656 thousand, down from $71,130 thousand for the three months ended September 30, 2024, indicating a decrease of about 26.0%[37] - The company reported a net loss of $17,062 thousand for the three months ended December 31, 2024, compared to a net loss of $137,067 thousand for the three months ended September 30, 2024[36] - Adjusted net loss income for the three months ended December 31, 2024, was $(596) thousand, compared to $28,978 thousand for the year ended December 31, 2023[36] Cash Flow and Assets - Free Cash Flow for the full year 2024 was $252 million, with Free Cash Flow adjusted for Acquisition Consideration at $118 million[4] - Cash and cash equivalents increased to $50,443 thousand as of December 31, 2024, from $33,354 thousand at the beginning of the year[28] - The net cash provided by operating activities for the year ended December 31, 2024, was $252,295 thousand, down from $374,742 thousand in 2023[28] - Cash from operating activities for the year ended December 31, 2024, was $252,295 thousand, down from $374,742 thousand for the year ended December 31, 2023, indicating a decrease of approximately 32.6%[41] Capital Expenditures - Capital expenditures for the full year 2024 were reduced to $133 million, a decrease of 57% from 2023[4] - Capital expenditures for the year ended December 31, 2024, were $140,297 thousand, significantly lower than $370,869 thousand in 2023[28] - Capital expenditures for the year ended December 31, 2024, totaled $133,388 thousand, compared to $310,020 thousand for the year ended December 31, 2023, reflecting a significant reduction of approximately 57.0%[31] - The company expects full-year 2025 capital expenditures to be between $300 million and $400 million, with $150 million to $200 million allocated for growth capital expenditures in the PROPWR business[17] Impairment Expenses - The company reported a goodwill impairment expense of $23,624 thousand for the year ended December 31, 2024[25] - The company incurred a property and equipment impairment expense of $188,601 thousand for the year ended December 31, 2024[28] - The company incurred a goodwill impairment expense of $23,624 thousand for the three months ended December 31, 2024[36] - The company reported a property and equipment impairment expense of $188,601 thousand for the year ended December 31, 2024, with no impairment expense reported for the year ended December 31, 2023[31] Shareholder Actions - The company repurchased and retired 13.0 million shares, representing approximately 11% of outstanding common stock since the plan's inception in May 2023[4] - The weighted average shares outstanding for basic shares decreased to 102,953 thousand in Q4 2024 from 110,164 thousand in Q4 2023[25] Business Developments - The company announced the formation of PROPWR, a new power generation business, with total ordered capacity of 140 megawatts[4] - The company anticipates significant opportunities in the power generation market, driven by demand trends in the energy industry[19] - The company plans to run between 14 and 15 hydraulic fracturing fleets in the first quarter of 2025[18] Costs and Expenses - Total costs and expenses for the year ended December 31, 2024, were $1,611,246 thousand, an increase of 7.4% compared to $1,500,056 thousand in 2023[25] - Total assets decreased to $1,223,645 thousand as of December 31, 2024, down from $1,480,312 thousand in 2023[27] - Total assets as of December 31, 2024, were $1,223,645 thousand, a decrease from $1,480,312 thousand as of December 31, 2023, representing a decline of about 17.4%[31]

INVESTOR PRESENTATION February 2025 Forward-Looking Statements Except for historical information contained herein, the statements and information in this presentation, including the oral statements made in connection herewith, are forward- looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Statements that are predictive in nature, that depend upon or refer to future events or conditions or that include the words "may," "confident, ...

Financial Performance - ProPetro Holding reported a quarterly loss of $0.01 per share, which aligns with the Zacks Consensus Estimate, compared to a loss of $0.16 per share a year ago [1] - The company posted revenues of $320.55 million for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 2.08%, but down from $347.78 million year-over-year [2] - ProPetro has surpassed consensus EPS estimates two times in the last four quarters and topped consensus revenue estimates three times in the same period [2][1] Market Performance - ProPetro shares have declined approximately 5.6% since the beginning of the year, while the S&P 500 has gained 4% [3] - The current Zacks Rank for ProPetro is 5 (Strong Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.07 on revenues of $346.48 million, and for the current fiscal year, it is $0.30 on revenues of $1.42 billion [7] - The trend for estimate revisions for ProPetro is currently unfavorable, which may impact future stock performance [6] Industry Context - The Oil and Gas - Field Services industry, to which ProPetro belongs, is ranked in the bottom 21% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could be a useful metric for investors [5]

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for ProPetro Holding despite lower revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - ProPetro is expected to report a quarterly loss of $0.01 per share, reflecting a year-over-year change of +93.8%, with revenues projected at $315.73 million, down 9.2% from the previous year [3]. - The earnings report is scheduled for release on February 19, 2025, and could influence stock movement based on whether results exceed or fall short of expectations [2]. Estimate Revisions - The consensus EPS estimate has been revised 3.13% lower in the last 30 days, indicating a reassessment by analysts [4]. - The Zacks Earnings ESP model suggests that recent estimate revisions may provide insights into business conditions leading up to the earnings release [5][6]. Earnings Surprise Prediction - ProPetro's Most Accurate Estimate is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +20%, although the stock carries a Zacks Rank of 5, complicating predictions of an earnings beat [10][11]. - Historical performance shows that ProPetro has beaten consensus EPS estimates in two of the last four quarters, with a notable surprise of +300% in the last reported quarter [12][13]. Conclusion - While ProPetro does not appear to be a strong candidate for an earnings beat, investors should consider other factors influencing stock performance ahead of the earnings release [16].

Core Viewpoint - ProPetro Holding Corp. has secured a new term contract for electric hydraulic fracturing services, enhancing its market position and showcasing its innovative technology in the oil and gas sector [1][5][6]. Group 1: Contract Details - The new contract is with a major Permian-focused oil and gas operator, extending ProPetro's footprint in the Permian Basin, one of the largest oil fields globally [2][6]. - ProPetro will deploy its FORCE electric frac fleets, which are designed for efficient completions while ensuring environmental sustainability [2][5]. - The contract requires approximately 165 megawatts of mobile power generation equipment to support the electric frac fleets, highlighting the importance of mobile power in hydraulic fracturing [8]. Group 2: Industry Impact - The shift towards electric-powered fracturing fleets indicates a broader industry trend aimed at minimizing environmental impact while improving efficiency [3][5]. - ProPetro's commitment to innovative solutions is crucial as the industry transitions from traditional diesel-powered rigs to electric alternatives [3][5]. - The demand for mobile power generation is expected to surge not only in the oil and gas sector but also in other industrial applications, including AI data centers [3][9]. Group 3: ProPWR Business - ProPetro's ProPWR business is positioned to provide critical services and equipment to support the rising demand for electric hydraulic fracturing fleets and other industrial applications [9][11]. - The company's mobile power solutions are integral to powering diverse industrial applications, offering a sustainable power source for various projects [4][11]. - ProPetro's focus on efficiency, cost-effectiveness, and environmental responsibility aligns with its broader strategy to enhance offerings and expand market presence [10][11].

Core Viewpoint - ProPetro Holding (PUMP) is positioned as a strong investment opportunity due to significant upward revisions in earnings estimates, indicating a positive earnings outlook and potential for continued stock price appreciation [1][2]. Earnings Estimate Revisions - Current-quarter earnings are projected at $0.01 per share, reflecting a substantial increase of +106.25% compared to the same quarter last year. Over the past 30 days, one estimate has been revised upward with no negative revisions, leading to a 100% increase in the Zacks Consensus Estimate [4]. - For the full year, earnings are expected to be $0.29 per share, which is a decrease of -61.84% from the previous year. However, the trend remains positive, with one upward revision and no negative changes in estimates, resulting in a 26.67% increase in the consensus estimate [5]. Zacks Rank and Performance - ProPetro has achieved a Zacks Rank of 2 (Buy), indicating strong agreement among analysts regarding the positive revisions in earnings estimates. The Zacks Rank system has a proven track record of identifying stocks that outperform the market [6]. - Stocks rated Zacks Rank 1 (Strong Buy) and 2 (Buy) have historically outperformed the S&P 500, suggesting that ProPetro may continue to see favorable performance [6]. Investment Outlook - The stock has appreciated by 23% over the past four weeks due to strong estimate revisions, and there is potential for further upside, making it a candidate for portfolio inclusion [7].