Revenue and Financial Performance - For the three months ended September 30, 2025, total service revenue was $293.9 million, a decrease from $360.9 million in the same period of 2024, representing a decline of approximately 18.6%[175]. - Adjusted EBITDA for the three months ended September 30, 2025, was $35.2 million, down from $71.1 million in the same period of 2024, indicating a decrease of about 50.5%[177]. - The company reported a net loss of $2.4 million for the three months ended September 30, 2025, compared to a net loss of $137.1 million in the same period of 2024[177]. - Total revenue decreased by 12.8%, or $144.2 million, to $979.5 million for the nine months ended September 30, 2025, compared to $1,123.7 million for the same period in 2024[202]. - Net income improved to $82 thousand for the nine months ended September 30, 2025, compared to a net loss of $120.8 million for the same period in 2024[202]. Segment Performance - Hydraulic Fracturing segment revenue decreased by 15.2%, or $129.7 million, primarily due to decreased customer activity and pricing, despite a $41.6 million increase from AquaProp's operations[202]. - Wireline segment revenue decreased by 2.8%, or $4.4 million, attributed to decreased customer activity and pricing during the first half of fiscal year 2025[203]. - Cementing segment revenue decreased by 9.2%, or $10.2 million, mainly due to the sale of the cementing business in Vernal, Utah, which contributed $19.3 million in revenue in the prior year[204]. - Hydraulic Fracturing segment revenue decreased by 23.3%, or $63.9 million, primarily due to decreased customer activity and idling of fleets[186]. - Wireline segment revenue increased by 8.8%, or $4.2 million, attributed to increased customer activity[187]. - Cementing segment revenue decreased by 18.7%, or $7.3 million, due to the sale of the cementing business in Vernal, Utah[188]. Capital Expenditures and Investments - Capital expenditures incurred for the three months ended September 30, 2025, totaled $98.4 million, compared to $36.8 million for the same period in 2024, reflecting an increase of approximately 167.5%[175]. - Capital expenditures for the three months ended September 30, 2025, were $98.4 million, a significant increase from $36.8 million in the same period in 2024, primarily for the power generation segment[221]. - Projected capital expenditures for 2025 are expected to range between $270 million and $290 million, including approximately $80 million to $100 million for completion services and $190 million for the PROPWR business[222]. - Capital expenditures incurred for the nine months ended September 30, 2025, totaled $210.1 million, compared to $108.6 million in 2024, with significant investments in the power generation segment[230]. Operational Changes and Strategic Moves - The company formed a new subsidiary, ProPetro Energy Solutions, LLC, which began revenue-generating activities in the three months ended September 30, 2025, and has a total capacity of approximately 360 megawatts under contractual arrangements for power generation equipment[155]. - The AquaProp Acquisition expanded the company's services to include wet sand solutions, with total consideration amounting to $35.1 million, including cash and contingent consideration[157]. - The company sold its cementing business for $13.0 million, recording a gain on disposal of $8.2 million, as part of a strategic repositioning[156]. - The company expects to capitalize on drilling and completion activity in the Permian Basin, particularly in the Midland and Delaware sub-basins, which are anticipated to command a significant share of future North American E&P spending[159]. Equipment and Emissions Transition - The company transitioned its hydraulic fracturing equipment portfolio from approximately 60% lower emissions equipment in 2023 to approximately 75% as of September 30, 2025[168]. - The transition to lower emissions equipment is capital intensive, and the company is working to meet customer demands for such equipment to avoid adverse impacts on service demand[168]. Market Conditions - The average West Texas Intermediate (WTI) crude oil price declined to approximately $64 per barrel in September 2025, influenced by various geopolitical and economic factors[166]. - The Permian Basin rig count decreased from 304 at the end of 2024 to 251 at the end of September 2025, leading to reduced demand for completion services[166]. Liquidity and Financial Position - Total liquidity as of September 30, 2025, was approximately $157.6 million, consisting of $66.5 million in cash and cash equivalents and $91.1 million available under the ABL Credit Facility[218]. - The Company has a borrowing capacity of up to $225.0 million under its ABL Credit Facility, with a borrowing base of approximately $144.6 million as of September 30, 2025[232][233]. Tax and Share Repurchase - The effective tax rate for the nine months ended September 30, 2025, was 97.1%, compared to an income tax benefit and an effective tax rate of 18.8% for the same period in 2024[216]. - The Company approved an extension of its share repurchase program, allowing for the repurchase of up to $200 million of common stock through December 31, 2026, with $89.2 million remaining authorized for future repurchases as of September 30, 2025[219].

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Financial Performance - Total revenue for Q3 2025 was $294 million, a decrease of 10% from $326 million in Q2 2025[5] - Net loss for the quarter was $2 million, or $0.02 loss per diluted share, compared to a net loss of $7 million, or $0.07 loss per diluted share in the prior quarter[10] - Adjusted EBITDA was $35 million, representing 12% of revenue, down 29% from $50 million in Q2 2025[10] - Service revenue for Q3 2025 was $293,916 thousand, a decrease of 20% from $360,868 thousand in Q3 2024[31] - The net loss for Q3 2025 was $2,365 thousand, compared to a net loss of $137,067 thousand in Q3 2024, indicating improved financial performance[31] - Service revenue for the three months ended September 30, 2025, was $293.916 million, a decrease from $326.151 million for the three months ended June 30, 2025, representing a decline of approximately 9.8%[37] - Adjusted EBITDA for the three months ended September 30, 2025, was $35.164 million, down from $49.607 million for the three months ended June 30, 2025, reflecting a decrease of about 29.1%[41] - Net loss for the three months ended September 30, 2025, was $2.365 million, an improvement compared to a net loss of $7.155 million for the three months ended June 30, 2025[41] Cash Flow and Assets - Free Cash Flow for the completions business was $25 million, totaling $92 million year-to-date through Q3 2025[5] - Cash and cash equivalents increased to $66,541 thousand as of September 30, 2025, up from $50,443 thousand at the beginning of the period[33] - The company experienced a net cash provided by operating activities of $150,563 thousand for the nine months ended September 30, 2025, compared to $214,432 thousand in 2024[33] - The total shareholders' equity increased to $826,210 thousand as of September 30, 2025, from $816,273 thousand at the end of 2024[32] Capital Expenditures - Capital expenditures incurred were $98 million, with $79 million supporting PROPWR orders[19] - The company anticipates full-year 2025 capital expenditures to be between $270 million and $290 million, with PROPWR accounting for approximately $190 million[21] - The company reported capital expenditures of $122,084 thousand for the nine months ended September 30, 2025, compared to $112,449 thousand for the same period in 2024[33] - Capital expenditures incurred for the three months ended September 30, 2025, totaled $98.353 million, compared to $73.092 million for the three months ended June 30, 2025, indicating an increase of approximately 34.6%[37] Contracts and Growth - The company secured a long-term contract for 60 megawatts of power capacity for a hyperscaler data center, marking its entry into the data center power market[5] - Total contracted capacity for PROPWR expanded to over 150 megawatts, with expectations to reach at least 220 megawatts by year-end 2025[14] - The company has executed a letter of intent for a $350 million lease financing facility to support PROPWR growth[16] - The company targets an installed capacity of one gigawatt or greater by 2030, driven by growth in oilfield and data center power projects[17] Other Financial Metrics - Total costs and expenses for Q3 2025 were $299,982 thousand, down from $539,160 thousand in Q3 2024, reflecting a significant reduction[31] - Accounts receivable increased to $209,225 thousand as of September 30, 2025, from $195,994 thousand at the end of 2024[32] - The weighted average common shares outstanding for Q3 2025 were 103,974 thousand, consistent with the previous quarter[31] - Depreciation and amortization for the three months ended September 30, 2025, was $41.660 million, down from $43.309 million for the three months ended June 30, 2025[41] - Interest expense for the three months ended September 30, 2025, was $2.110 million, an increase from $1.811 million for the three months ended June 30, 2025[41] - The company reported a $2.0 million unrealized gain on short-term investments for the three months ended September 30, 2025, contributing to other income[43] - The company incurred a retention bonus and severance expense of $200 thousand for the three months ended September 30, 2025, compared to $327 thousand for the three months ended June 30, 2025[41]

Financial Data and Key Metrics Changes - ProPetro generated total revenue of $294 million, a decrease of 10% compared to the prior quarter [19] - Net loss totaled $2 million or $0.02 loss per diluted share, an improvement from a net loss of $7 million or $0.07 loss per diluted share in the previous quarter [19] - Adjusted EBITDA was $35 million, representing 12% of revenue, and decreased by 29% compared to the prior quarter [19] - Free cash flow for the completions business was $25 million [19] Business Line Data and Key Metrics Changes - The completions business continues to generate sustainable free cash flow despite a decline in activity and related revenue [20] - Capital expenditures incurred were $98 million, with approximately $79 million supporting ProPWR orders [21] - The company anticipates full-year 2025 capital expenditures to be between $270 million and $290 million, down from previous guidance [22] Market Data and Key Metrics Changes - Approximately 70 full-time frac fleets are currently operating in the Permian, down from 90 to 100 fleets at the beginning of the year, indicating a slowdown in the completions market [4] - Pricing discipline has softened at the lower end of the market, particularly among subscale frac providers [7] Company Strategy and Development Direction - ProPetro is focusing on capital light investments and the ProPWR segment as key growth engines [6][10] - The company secured a long-term contract for 60 megawatts to support a hyperscale data center, marking its entry into the data center power market [11] - ProPetro plans to expand its capacity to 750 megawatts by the end of 2028, with a focus on both oilfield power projects and data center applications [12][15] Management's Comments on Operating Environment and Future Outlook - The management expects the challenging operating environment to persist into at least the first half of next year due to tariffs and OPEC production increases [5] - Despite current market challenges, ProPetro is well-positioned with a strong balance sheet and a focus on operational excellence [17] - The company anticipates maintaining 10 to 11 active fleets in the fourth quarter, with expectations for sequential improvement in the ProPWR segment [16] Other Important Information - ProPetro has executed a letter of intent for a $350 million leasing facility to support its ProPWR growth [13][25] - The company is committed to a disciplined approach to capital deployment, ensuring flexibility to pivot between key priorities [24] Q&A Session Summary Question: Details on the 60 megawatt data center contract - The contract involves reciprocating engines and battery energy storage systems, with potential for future capacity expansion [30][33] Question: Future funding structures and liquidity runway - The company prioritizes organic free cash flow for funding, with additional options available for future capital needs [35][38] Question: Contract duration preferences in the current environment - The company evaluates each deal on a case-by-case basis, balancing long-term contracts with potential for higher margins in shorter terms [44][46] Question: Equipment cost differentials between data centers and oilfield microgrids - There is no significant cost differential; the average cost of equipment is around $1.1 million per megawatt [47][48] Question: Deployment of megawatts across different markets - The company anticipates a balanced distribution between oilfield contracts and data center contracts, with potential shifts based on market opportunities [53][56] Question: Concerns about power being bid away from frac business - The company feels confident about its current positioning and the differentiation in equipment used for different applications [61][62] Question: Differentiation between frac and power generation services - Both service lines focus on customer needs, with a strong emphasis on operational excellence and flexibility [66][68]

Financial Data and Key Metrics Changes - ProPetro generated total revenue of $294 million, a decrease of 10% compared to the prior quarter [19] - Net loss totaled $2 million or $0.02 loss per diluted share, an improvement from a net loss of $7 million or $0.07 loss per diluted share in the second quarter [19] - Adjusted EBITDA was $35 million, representing 12% of revenue, and decreased by 29% compared to the prior quarter [19] - Free cash flow for the completions business was $25 million [19] Business Line Data and Key Metrics Changes - The completions business continues to generate sustainable free cash flow despite a decline in activity and related revenue [20] - Capital expenditures incurred were $98 million, with approximately $79 million supporting PROPWR orders [21] - The company anticipates full-year 2025 capital expenditures to be between $270 million and $290 million, down from previous guidance [23] Market Data and Key Metrics Changes - Approximately 70 full-time frac fleets are currently operating in the Permian, down from 90-100 fleets at the beginning of the year, indicating a slowdown in the completions market [4] - Pricing discipline has softened at the lower end of the market, particularly among subscale frac providers [7] Company Strategy and Development Direction - ProPetro is focusing on capital light investments and the industrialized operating model to generate free cash flow [4] - The company is prioritizing investments in PROPWR and FORCE Electric fleets to support future growth [7] - ProPetro secured a long-term contract for 60 MW to support a hyperscale data center, marking its entry into the data center power market [11] Management's Comments on Operating Environment and Future Outlook - Management expects the challenging operating environment to continue into at least the first half of next year due to tariffs and OPEC production increases [5] - The company anticipates maintaining 10-11 active fleets in the fourth quarter, with expectations for sequential improvement in the PROPWR segment [16] - Management remains confident in the company's strategy and future growth, particularly in the PROPWR segment [27] Other Important Information - ProPetro has secured a letter of intent for a $350 million leasing facility to support growth in the PROPWR business [13] - The company plans to reach at least 220 MW contracted by the end of the year, with expectations to deliver 750 MW by year-end 2028 [12] Q&A Session Summary Question: Details on the 60 MW data center contract - The technology deployed includes reciprocating engines and battery energy storage systems, with potential for future capacity expansion [33][34] Question: Future funding structures and liquidity runway - The company prioritizes organic free cash flow for funding, with the leasing facility providing flexible capital for growth [37][39] Question: Contract duration preferences - The 60 MW contract is long-term, with the company evaluating each deal on a case-by-case basis for optimal terms [45][47] Question: Equipment cost differentials - The average cost of equipment, including battery systems, is about $1.1 million per megawatt, with no significant cost differential between data center and Permian microgrid projects [48][49] Question: Deployment of megawatts across markets - The company anticipates a balanced distribution of contracts between data centers and oilfield applications, with potential shifts based on market opportunities [55][56] Question: Differentiation in service lines - Both the frac and power generation businesses focus on customer needs, with a strong emphasis on operational excellence and technology expertise [66][69]

Financial Data and Key Metrics Changes - ProPetro generated total revenue of $294 million, a decrease of 10% compared to the prior quarter [29] - Net loss totaled $2 million or $0.02 loss per diluted share, compared to a net loss of $7 million or $0.07 loss per diluted share for the second quarter of 2025 [29] - Adjusted EBITDA totaled $35 million, representing 12% of revenue, and decreased 29% compared to the prior quarter [29] - Free cash flow for the completions business was $25 million [29] Business Line Data and Key Metrics Changes - The completions business continues to generate sustainable free cash flow despite a decline in activity and related revenue [30] - Capital expenditures incurred were $98 million, with approximately $79 million supporting ProPWR orders [30] - The company anticipates full-year 2025 capital expenditures incurred to be between $270 million and $290 million, down from the previous range [32] Market Data and Key Metrics Changes - Approximately 70 full-time frac fleets are currently operating in the Permian, down from 90 to 100 fleets at the beginning of the year, indicating depressed activity levels [14] - The company expects the challenging operating environment to persist into 2026 due to tariffs and OPEC production increases [15][26] Company Strategy and Development Direction - ProPetro is focusing on capital light investments and the development of its ProPWR segment, which is expected to drive future growth [15][20] - The company has secured contracts for seven frac fleets, with 75% of the fleet consisting of next-generation gas-burning equipment [20] - ProPetro aims to deepen existing relationships and expand its reach to new partners in the power generation market, targeting at least 220 megawatts contracted by the end of the year [23] Management's Comments on Operating Environment and Future Outlook - Management believes the current market conditions present valuable opportunities, and the company is well-positioned to navigate the market [19] - The company expects to maintain 10 to 11 active fleets in the fourth quarter, with a sequential improvement anticipated in the ProPWR segment [26][27] - Management remains confident in the strategy and future of ProPetro, emphasizing the importance of a strong balance sheet and disciplined capital allocation [38] Other Important Information - ProPetro has executed a letter of intent for a $350 million leasing facility to support growth in the ProPWR business [24][34] - The company plans to reach a total of 750 megawatts delivered by year-end 2028, with a focus on long-term take-or-pay contracts [24][33] Q&A Session Summary Question: Details on the 60 megawatts data center contract - The contract involves reciprocating engines and battery energy storage systems, with potential for future capacity expansion [49] Question: Future funding structures and liquidity runway - The company prioritizes organic free cash flow for funding, with the leasing facility providing flexible capital as needed [58][60] Question: Contract term preferences in the current environment - The company evaluates each deal on a case-by-case basis, considering both long-term and shorter-term contracts based on market conditions [75] Question: Equipment cost differential for data centers versus Permian microgrids - The average cost of equipment is about $1.1 million per megawatt, with similar economics across both sectors [78][95] Question: Deployment of megawatts across different markets - The current distribution of contracted megawatts is expected to remain similar in the near term, with potential shifts as more data center contracts are pursued [84]

Core Viewpoint - ProPetro Holding reported a quarterly loss of $0.02 per share, outperforming the Zacks Consensus Estimate of a loss of $0.11, indicating an earnings surprise of +81.82% [1] Financial Performance - ProPetro's revenues for the quarter ended September 2025 were $293.92 million, exceeding the Zacks Consensus Estimate by 14.02%, but down from $360.87 million year-over-year [2] - The company has surpassed consensus EPS estimates two times over the last four quarters and topped consensus revenue estimates three times in the same period [2] Stock Performance and Outlook - ProPetro shares have declined approximately 21.8% year-to-date, contrasting with the S&P 500's gain of 17.2% [3] - The company's earnings outlook is crucial for assessing future stock performance, with current consensus EPS estimates at -$0.15 for the upcoming quarter and -$0.22 for the current fiscal year [7] Industry Context - The Oil and Gas - Field Services industry, to which ProPetro belongs, is currently ranked in the bottom 35% of over 250 Zacks industries, suggesting potential underperformance compared to higher-ranked industries [8] - The performance of ProPetro's stock may also be influenced by the overall industry outlook and trends in earnings estimate revisions [5][8]

Financial Performance & Strategy - ProPetro reported Q3 2025 revenue of $294 million and Adjusted EBITDA of $35 million[13] - Free Cash Flow for Completions Business in Q3 2025 was $25 million[13] - The company is focused on generating sustainable completions free cash flow through reduced capex and targeted M&A[10] - ProPetro is strategically located in the Permian Basin, with 100% of its completions business revenue derived from this region[20] PROPWR Business - ProPetro is expanding into power generation services with PROPWR, targeting an installed capacity of 1 gigawatt or greater by 2030[12, 34] - PROPWR has secured a letter of intent for a $350 million lease financing facility[31] - Total contracted capacity for PROPWR has expanded to over 150 megawatts, with expectations to reach at least 220 megawatts by year-end[31] - Increased equipment orders to 360 megawatts, with all units expected to be delivered by early 2027 and anticipate 750 megawatts delivered by year-end 2028[33] Fleet Transformation & Capital Allocation - Approximately 70% of ProPetro's active hydraulic horsepower is now secured under long-term contracts[46] - The company has a $200 million share repurchase program, with $89 million remaining as of the report[49, 50]

Core Viewpoint - Propetro Holding's stock price increased over 15% following the announcement of a long-term power supply agreement with a major cloud data center operator in the Midwest, marking a significant strategic milestone for the company [1] Group 1: Business Development - Propetro's PROPWR division will provide 60 megawatts of power through a hybrid solution consisting of natural gas generators and battery storage systems [1] - The agreement establishes a substantial commercial partnership with a leading data infrastructure operator, indicating a strategic transformation for Propetro [1] Group 2: Future Prospects - The contract includes provisions for expansion and extension, allowing for scaling of operations in line with the customer's energy demand growth [1] - The project is expected to commence deployment and operations in the second quarter of 2026 [1] Group 3: Leadership Statement - Travis Simmering, President of PROPWR, emphasized the company's commitment to providing cutting-edge, reliable energy solutions for data center infrastructure development [1]

Core Viewpoint - Propetro Holding's stock price increased over 15% to $7.285 following the announcement of a long-term power supply agreement with a major cloud data center operator in the Midwest, marking a significant strategic milestone for the company [1] Group 1: Business Development - Propetro's PROPWR division will provide 60 megawatts of power to the data center through a hybrid solution consisting of natural gas generators and battery storage systems [1] - The agreement includes expansion and extension clauses, allowing for increased collaboration based on the customer's future energy demands [1] - The project is expected to commence deployment and operations in the second quarter of 2026 [1] Group 2: Strategic Importance - The partnership with a top-tier data infrastructure operator signifies a substantial commercial relationship for Propetro, reflecting the company's commitment to providing advanced and reliable energy solutions for data center infrastructure development [1]