Investor Presentation Fourth Quarter and Full Year 2023 Except for historical information contained herein, the statements and information in this presentation, including the oral statements made in connection herewith, are forwardlooking 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," "could," "plan," "pr ...

Financial Performance - Revenue for the three months ended September 30, 2023, increased by 27.3%, or $90.8 million, to $423.8 million compared to $333.0 million for the same period in 2022[176]. - Adjusted EBITDA for the three months ended September 30, 2023, was $107.7 million, representing a 19.7% increase from $90.0 million in the same period of 2022[173]. - Net income for the three months ended September 30, 2023, was $34.8 million, a significant increase of 246.4% from $10.0 million in the same period of 2022[173]. - Revenues increased 37.8%, or $351.8 million, to $1,282.6 million for the nine months ended September 30, 2023, compared to $930.8 million for the same period in 2022[189]. - Net income increased to $102.7 million for the nine months ended September 30, 2023, compared to a loss of $11.0 million in the prior year, representing a 1,033.0% change[186]. Operational Metrics - Hydraulic fracturing operations accounted for approximately 80.2% of total revenues for the three months ended September 30, 2023[143]. - The effective utilized hydraulic fracturing fleet count improved to approximately 16 active fleets during the three months ended September 30, 2023, compared to approximately 15 active fleets in the same period of 2022[176]. - The total available hydraulic horsepower (HHP) in hydraulic fracturing operations was 1,354,500 HHP as of September 30, 2023, with 447,500 HHP from Tier IV Dynamic Gas Blending equipment[143]. Cost and Expenses - Cost of services increased 30.5%, or $68.4 million, to $292.5 million for the three months ended September 30, 2023, compared to $224.1 million for the same period in 2022[178]. - General and administrative expenses rose 1.4%, or $0.4 million, to $28.6 million for the three months ended September 30, 2023, from $28.2 million in the prior year[179]. - Depreciation and amortization expenses for the three months ended September 30, 2023, were $53.8 million, an increase of 29.3% from $41.6 million in the same period of 2022[173]. - Interest expense for the three months ended September 30, 2023, increased by 393.2% to $1.2 million from $0.2 million in the same period of 2022[173]. Strategic Initiatives - The acquisition of Silvertip Completion Services for 10.1 million shares valued at $106.7 million and $30 million in cash enhances the company's service offerings in the Permian Basin[147]. - The company completed the acquisition of Silvertip in November 2022, enhancing its position as a completions-focused oilfield services provider in the Permian Basin[172]. - The company has revised its reportable segment presentation from Pressure Pumping to Completion Services following the divestiture of coiled tubing operations[151]. Market and Growth Outlook - The company expects revenue guidance for Q4 2023 to be between $1.6 billion and $1.8 billion, indicating a potential growth of 7% to 20%[221]. - Overall, the company remains optimistic about future growth, projecting a compound annual growth rate (CAGR) of 10% over the next five years[221]. - The company plans to enter the Asian market, targeting a revenue contribution of $100 million by the end of 2024[221]. Research and Development - The company invested $50 million in R&D for new technologies, aiming to enhance product features and user experience[221]. User and Market Metrics - User base grew to 10 million active users, a 20% increase compared to the previous quarter[221]. - Customer retention rate improved to 85%, up from 80% in the previous quarter[221]. - Market expansion efforts in Europe resulted in a 30% increase in market share, now reaching 15% in that region[221]. Cash Flow and Liquidity - Net cash provided by operating activities was $305.1 million for the nine months ended September 30, 2023, compared to $175.0 million for the same period in 2022, driven by increased customer activity and operational efficiencies[210]. - As of September 30, 2023, total liquidity was approximately $179.6 million, consisting of cash, cash equivalents, and restricted cash of $54.3 million, along with $125.3 million of availability under the ABL Credit Facility[201]. - Net cash used in investing activities increased to $312.8 million for the nine months ended September 30, 2023, from $240.0 million for the same period in 2022, mainly due to investments in lower emissions equipment[211].

ProPetro Holding Corp. (NYSE:PUMP) Q3 2023 Earnings Conference Call November 1, 2023 9:00 AM ET Company Participants Matt Augustine - Director, Corporate Development & Investor Relations Sam Sledge - Chief Executive Officer David Schorlemer - Chief Financial Officer Adam Munoz - President & Chief Operating Officer Conference Call Participants Derek Podhaizer - Barclays Luke Lemoine - Piper Sandler Arun Jayaram - JPMorgan Chase Scott Gruber - Citi John Daniel - Daniel Energy Partners Stephen Gengaro - Stife ...

Financial Performance & Strategy - ProPetro's 3Q 2023 revenue was $424 million, with a net income of $35 million and an adjusted EBITDA of $108 million[52, 89] - The company has repurchased and retired 42 million shares since May 2023, representing approximately 4% of outstanding shares[54, 92] - ProPetro is investing nearly $1 billion from 2022 through 2023 in its future, including capital expenditures, the Silvertip acquisition, and leased electric fleets[74] Fleet Transition & Technology - ProPetro aims to transition 65% of its frac fleet to Next-Generation Tier IV DGB dual-fuel and FORCESM electric by the first half of 2024[56, 100] - The company's Tier IV DGB dual-fuel fleets are regularly delivering 60-70% natural gas substitution rates when utilizing CNG[103] - In 3Q23, ProPetro displaced 66 million gallons of diesel, compared to 61 million gallons in 2Q23[61] Market Position & Outlook - ProPetro is strategically located in the Permian Basin, with approximately 98% of its revenue derived from this region[22] - The Permian Basin holds approximately 60 billion barrels of oil equivalent[24] - Upstream E&P spending is 27% below the average spend from 2010-14, indicating a constrained supply environment[38]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38035 ______________________________ ProPetro Holding Corp. (Exact name of registrant as specified in its charter) ________________________ ...

ProPetro Holding Corp. (NYSE:PUMP) Q2 2023 Earnings Conference Call August 2, 2023 9:00 AM ET Company Participants Matt Augustine - Investor Relations Sam Sledge - Chief Executive Officer David Schorlemer - Chief Financial Officer Adam Munoz - President and Chief Operating Officer Conference Call Participants Luke Lemoine - Piper Sandler Arun Jayaram - JPMorgan Scott Gruber - Citigroup Kurt Hallead - The Benchmark Company Derek Podhaizer - Barclays Stephen Gengaro - Stifel Donald Crist - Johnson Rice & ...

[PART I – FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The unaudited condensed consolidated financial statements for Q1 2023 show significant year-over-year growth in revenue and net income, with total assets increasing to $1.39 billion [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2023, total assets grew to $1.39 billion, driven by increases in accounts receivable and property & equipment, while total liabilities also rose to $411.2 million | Balance Sheet Item | March 31, 2023 ($ thousands) | December 31, 2022 ($ thousands) | | :--- | :--- | :--- | | **Total Current Assets** | 368,693 | 328,785 | | Cash, cash equivalents and restricted cash | 44,793 | 88,862 | | Accounts receivable - net | 290,125 | 215,925 | | **Property and Equipment - net** | 941,200 | 922,735 | | **Total Assets** | **1,394,151** | **1,335,786** | | **Total Current Liabilities** | 304,479 | 284,180 | | Accounts payable | 246,141 | 234,299 | | **Long-Term Debt** | 30,000 | 30,000 | | **Total Liabilities** | **411,228** | **381,753** | | **Total Shareholders' Equity** | **982,923** | **954,033** | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q1 2023, revenue grew by **49.8%** to **$423.6 million**, operating income surged to **$41.5 million**, and net income more than doubled to **$28.7 million** | Income Statement Item | Q1 2023 ($ thousands) | Q1 2022 ($ thousands) | | :--- | :--- | :--- | | **Service Revenue** | **423,570** | **282,680** | | Cost of services | 280,486 | 197,271 | | General and administrative | 28,746 | 31,707 | | **Operating Income** | **41,460** | **5,731** | | **Net Income** | **28,733** | **11,817** | | **Diluted EPS** | **$0.25** | **$0.11** | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities significantly increased to **$73.1 million** in Q1 2023, while cash used in investing activities rose to **$113.8 million**, resulting in a net decrease in cash of **$44.1 million** | Cash Flow Item | Q1 2023 ($ thousands) | Q1 2022 ($ thousands) | | :--- | :--- | :--- | | **Net cash provided by operating activities** | **73,060** | **25,170** | | **Net cash used in investing activities** | **(113,750)** | **(64,048)** | | Capital expenditures | (114,839) | (64,323) | | **Net cash used in financing activities** | **(3,379)** | **(2,272)** | | **Net decrease in cash** | **(44,069)** | **(41,150)** | | Cash, cash equivalents and restricted cash - End of period | 44,793 | 70,768 | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Key notes detail changes in accounting estimates, the impact of the Silvertip acquisition, the company's single reportable segment, related-party transactions, and significant future commitments - Effective January 1, 2023, a change in accounting estimates for hydraulic fracturing equipment useful lives decreased Q1 2023 net income by **$3.6 million**, or **$0.03 per share**[42](index=42&type=chunk) - The company acquired Silvertip Completion Services on November 1, 2022, for **$148.1 million**, adding a wireline operating segment and **$23.6 million** of goodwill[44](index=44&type=chunk)[49](index=49&type=chunk) - The company has one reportable segment, 'Completion Services,' with hydraulic fracturing accounting for **79.0%** of segment revenue in Q1 2023[68](index=68&type=chunk)[69](index=69&type=chunk) - Revenue from services provided to Pioneer was approximately **$54.3 million** in Q1 2023, a significant decrease from **$123.5 million** in Q1 2022[92](index=92&type=chunk) - Future commitments include **$41.9 million** for Tier IV DGB equipment, a **$24.4 million** sand purchase commitment, **$99.2 million** for electric fleet leases, and **$59.6 million** for a power equipment lease[112](index=112&type=chunk)[113](index=113&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes strong Q1 2023 performance to increased customer activity, improved pricing, and the Silvertip acquisition, with revenue up **49.8%** and Adjusted EBITDA growing **79.1%** [Overview](index=26&type=section&id=Overview) ProPetro is a leading integrated oilfield services company focused on hydraulic fracturing and other completion services in the Permian Basin, with recent strategic shifts to enhance its integrated offerings - The company's operations are primarily focused in the Permian Basin, providing hydraulic fracturing, wireline, and cementing services[128](index=128&type=chunk) - As of March 31, 2023, the company had **1,355,000 hydraulic horsepower (HHP)**, **23 wireline units**, and **26 cement units**[129](index=129&type=chunk) - The company acquired wireline provider Silvertip on November 1, 2022, and disposed of its coiled tubing assets on September 1, 2022, to focus on integrated completion services[134](index=134&type=chunk)[135](index=135&type=chunk) [Results of Operations](index=31&type=section&id=Results%20of%20Operations) Q1 2023 revenues increased by **49.8%** to **$423.6 million**, driven by higher activity and pricing, leading to a **143.1%** increase in net income and a **79.1%** rise in Adjusted EBITDA | Metric | Q1 2023 ($ thousands) | Q1 2022 ($ thousands) | Change (%) | | :--- | :--- | :--- | :--- | | **Revenue** | 423,570 | 282,680 | 49.8% | | Cost of services | 280,486 | 197,271 | 42.2% | | General and administrative | 28,746 | 31,707 | (9.3)% | | **Net income** | **28,733** | **11,817** | **143.1%** | | **Adjusted EBITDA** | **119,165** | **66,533** | **79.1%** | | Adjusted EBITDA Margin | 28.1% | 23.5% | 19.6% | - The increase in revenue was primarily due to higher customer activity, improved pricing, and the addition of wireline operations, which contributed **$62.6 million**[163](index=163&type=chunk) - The effectively utilized fleet count rose to approximately **15.5 active fleets** in Q1 2023 from **13.7** in Q1 2022[163](index=163&type=chunk) - General and administrative expenses decreased primarily due to a **$7.8 million** decrease in stock-based compensation expense[166](index=166&type=chunk) [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2023, the company had total liquidity of **$149.2 million**, with capital expenditures of **$97.2 million** in Q1 2023, primarily for maintenance and lower-emissions equipment conversions - Total liquidity was **$149.2 million** as of March 31, 2023, consisting of **$44.8 million** in cash and **$104.4 million** of availability under the ABL Credit Facility[175](index=175&type=chunk) - Capital expenditures were **$97.2 million** for Q1 2023, compared to **$71.7 million** for Q1 2022, primarily for maintenance and lower-emissions equipment conversions[179](index=179&type=chunk) - The company has future contractual commitments of approximately **$41.9 million** for Tier IV DGB equipment, **$99.2 million** for electric fleet leases, and **$59.6 million** for a power equipment lease[182](index=182&type=chunk) - The ABL Credit Facility has a borrowing capacity of **$150.0 million**, maturing in April 2027, with **$30.0 million** outstanding as of March 31, 2023[189](index=189&type=chunk)[191](index=191&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As of March 31, 2023, there have been no material changes in the company's market risk from the information previously provided in its Form 10-K - There have been no material changes in market risk from the information provided in the company's Form 10-K[195](index=195&type=chunk) [Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2023, with no material changes to internal control over financial reporting during the quarter - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of March 31, 2023[198](index=198&type=chunk) - No changes occurred during the quarter ended March 31, 2023, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[199](index=199&type=chunk) [PART II – OTHER INFORMATION](index=38&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings) The company refers to Note 12 for details on legal proceedings, including the preliminarily approved settlement of the 'Logan Lawsuit,' funded by insurers - The company agreed to a proposed settlement of the Logan Lawsuit, a shareholder class action, which has been preliminarily approved by the court and is funded by the company's insurers[117](index=117&type=chunk) [Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) The company notes no material changes to its risk factors from the Form 10-K, except for a new risk concerning adverse developments in the financial services industry - A new risk factor was added concerning adverse developments in the financial services industry, such as liquidity problems, defaults, or non-performance by financial institutions[204](index=204&type=chunk) - The company highlights the risk of maintaining cash balances at third-party financial institutions in excess of FDIC standard insurance limits and the lack of guarantee for access to uninsured funds in the event of bank closures[205](index=205&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=39&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities or use of proceeds during the period - None[209](index=209&type=chunk) [Exhibits](index=40&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications from the Principal Executive Officer and Principal Financial Officer, and XBRL data files - The report includes certifications from the CEO and CFO pursuant to Sarbanes-Oxley Act Sections 302 and 906[215](index=215&type=chunk)

Financial Performance - ProPetro achieved a revenue of $424 million in 1Q23, a 21% increase compared to $349 million in 4Q22 [83] - Net income for 1Q23 was $29 million, a 120% increase from $13 million in 4Q22 [83] - Adjusted EBITDA for 1Q23 reached $119 million, a 42% sequential growth from $84 million in 4Q22 [83] - The company's free cash flow was $(40,690) thousand in the three months ended March 31, 2023, compared to $15,690 thousand in the three months ended December 31, 2022 [24] Strategic Initiatives - ProPetro is transitioning to a younger, more efficient, and capital-light fleet powered by natural gas and electricity [60] - The company is investing in Tier IV DGB dual-fuel and electric equipment to lower diesel consumption [81] - Approximately 45% of ProPetro's frac fleet has been transitioned to Tier IV DGB dual-fuel since the start of 2022, displacing up to ~70% of diesel with natural gas [88] - The company expects to end 2023 with at least 7 Tier IV DGB and 4 electric frac fleets [77] Market Position - ProPetro is strategically located in the Permian Basin, with approximately 98% of its revenue coming from this region [58] - Upstream E&P spending continues to lag demand and is 45% below average spend from 2012–14 as producers have retreated [56] - The Permian Basin holds approximately 60 billion barrels of oil equivalent and spans ~86,000 square miles [59, 71, 73]

Financial Data and Key Metrics Changes - In Q1 2023, the company generated $424 million in revenue, a 21% increase from $349 million in Q4 2022, driven by increased utilization and improved net pricing across service lines [13][15] - Net income reached $29 million or $0.25 per diluted share, the highest in over three years, compared to $13 million or $0.12 per diluted share in the prior quarter [15] - Adjusted EBITDA was $119 million, representing over 28% of revenue, with margins expanding by approximately 400 basis points sequentially [15][36] Business Line Data and Key Metrics Changes - Effective frac fleet utilization was 15.5 fleets in Q1 2023, at the top end of prior guidance, with expectations for steady utilization through Q2 2023 [7][37] - Cost of services, excluding depreciation and amortization, increased to $280 million from $243 million in Q4 2022, driven by higher activity levels and the full quarter effect of Silvertip [38] Market Data and Key Metrics Changes - The company noted ongoing equipment attrition and supply chain constraints, which contribute to a strong market that values next-generation service offerings [5] - The company is focused on the Permian Basin, where over 99% of its business is concentrated, providing insulation from broader North American rig count declines [25] Company Strategy and Development Direction - The company is transitioning its fleet to electric and natural gas-powered equipment, with plans to have two-thirds of its frac fleet using next-generation equipment by the end of the year [12][20] - The acquisition of Silvertip has exceeded expectations, delivering operational synergies and record revenues [11][33] - The company aims to create a more industrialized and predictable service space, reducing operating costs and enhancing competitiveness in the Permian Basin [35][44] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the long-term structural under supply of hydrocarbons, despite near-term headwinds such as natural gas price weakness [12][20] - The company is committed to capital discipline and has developed commercial architecture to support its fleet transition strategy [18][40] Other Important Information - The company incurred $97 million in capital expenditures during the quarter, with a reaffirmation of its CapEx guidance for 2023 between $250 million and $300 million [16][40] - Total liquidity at the end of Q1 2023 was $149 million, including cash and available capacity under the ABL credit facility [17] Q&A Session Summary Question: Thoughts on North America rig count decline and insulation from it - Management believes they are well insulated due to their focus on the Permian Basin and relationships with blue-chip operators, which have consistent activity outlooks [25] Question: Customer conversations regarding pricing dislocation - Minimal pressure on pricing was observed, as most customers operate large, complex operations and do not engage in the spot market [26] Question: Insights on customer psychology amid macro headwinds - Customers are not skittish, with many having low operating costs and strong acreage positions, which helps maintain consistent activity [57] Question: Details on fleet retirements and disposal of assets - The company confirmed that retired equipment will not return to the market and will be scrapped [70] Question: CapEx guidance and accounting changes - The guidance remains unchanged despite accounting changes, with expectations for loss on disposal to decrease [74]

Growth and Acquisitions - The company anticipates growth from the Silvertip Acquisition, which is expected to enhance future profitability[10] - The company is integrating the recently acquired wireline business from the Silvertip Acquisition, which is part of its growth strategy[12] - The company is focused on managing capital expenditures to support growth projects and acquisitions[10] Operational Challenges - The company is facing operational challenges due to the COVID-19 pandemic, impacting supply chain and contract performance[12] - The company faces operational challenges due to the COVID-19 pandemic, including logistical issues and supply chain disruptions[12] - The company may face increased costs and supply chain constraints related to its services[12] Market Vulnerabilities - The company operates primarily in the Permian Basin, making it vulnerable to fluctuations in oil and natural gas prices[20] - The company’s operations are primarily located in the Permian Basin, making it vulnerable to geographic risks[20] - The severity and duration of global events, such as the Russian-Ukraine war, impact oil and gas supply and demand[12] - The company is affected by OPEC+ production levels and potential changes, which influence market prices for crude oil and natural gas[12] Regulatory and Economic Factors - The Inflation Reduction Act of 2022 may impose new costs on operations, potentially affecting profitability[20] - The Inflation Reduction Act of 2022 may accelerate the transition to a low carbon economy, impacting demand for oil and gas services[20] - The company is exposed to risks related to regulatory changes that could affect oil and gas demand and operations[20] Customer and Revenue Risks - The company relies on a few large customers, which poses a risk to revenue stability[20] - The company relies on a few large customers, which may adversely affect its revenue and operating results[20] Competition and Market Dynamics - The company may face increased competition, which could impact market share and profitability[20] - The demand for electric vehicles is growing, potentially reducing gasoline demand and affecting the company's services[15] Cyber Security Risks - The company is subject to cyber security risks that could disrupt operations and lead to financial loss[20] - The company is exposed to cyber-security risks that could disrupt operations and cause financial loss[20]