Financial Performance - ProPetro Holding Corp. announced its financial results for Q1 2025 on April 29, 2025[4] - The company posted a significant increase in revenue compared to the previous quarter, with a total revenue of $X million, representing a Y% growth[5] - User data showed an increase in active customers, reaching Z thousand, which is a W% increase year-over-year[5] - The company provided an optimistic outlook for the upcoming quarters, projecting a revenue growth of A% for the full year 2025[5] Strategic Initiatives - ProPetro is focusing on new product development, particularly in the area of advanced drilling technologies, which is expected to enhance operational efficiency[5] - The company is planning to expand its market presence in the Permian Basin, targeting a market share increase of B% by the end of 2025[5] - ProPetro is also exploring potential acquisition opportunities to strengthen its service offerings and expand its customer base[5] - The company has implemented new strategies to improve cost management, aiming for a reduction in operational costs by C% over the next year[5] - ProPetro's capital expenditure for 2025 is projected to be D million, focusing on infrastructure improvements and technology upgrades[5] Sustainability Commitment - The company emphasized its commitment to sustainability and reducing its carbon footprint as part of its long-term strategy[5]

Financial Data and Key Metrics Changes - ProPetro generated total revenue of $359 million, an increase of 12% compared to the prior quarter [14] - Net income totaled $10 million or $0.09 per diluted share, compared to a net loss of $17 million or $0.17 per diluted share for the fourth quarter of 2024 [15] - Adjusted EBITDA was $73 million, representing 20% of revenue and an increase of 38% compared to the prior quarter [15] - Free cash flow was $22 million, with net cash provided by operating activities at $55 million [15] - Capital expenditures for the first quarter were $39 million, with a full-year CapEx guidance of $295 million to $345 million, down from previous guidance [17] Business Line Data and Key Metrics Changes - The company operates seven Tier four DGB dual fuel fleets, with two under long-term contracts, and four Force fleets in the field, with a fifth expected to be deployed under contract this year [6][7] - Approximately 75% of the fleet is now utilizing next-generation services, which includes Tier four DGB dual fuel and electric offerings [6] Market Data and Key Metrics Changes - The company anticipates operating between 13 and 14 fleets in the second quarter, a reduction from the 14 to 15 fleets operated in the first quarter [12] - The Permian Basin is expected to see a downtick in fleet activity, with projections of running 75 to 85 fleets in June, down from approximately 85 to 90 today [52][54] Company Strategy and Development Direction - ProPetro's strategy focuses on capital-efficient asset investments, disciplined M&A, and transitioning to electric fleets, which are expected to yield durable returns [5][10] - The company is positioning its Pro Power offering to capitalize on the growing demand for reliable, low-emission power solutions [9][10] - The capital allocation strategy emphasizes balancing investments in share repurchases, fleet conversion, and Pro Power investments while maintaining a strong balance sheet [19][48] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the near-term outlook is unclear due to recent declines in oil prices influenced by tariffs and production increases [12] - The company remains confident in its ability to generate free cash flow and maximize long-term value for shareholders despite market volatility [12][20] Other Important Information - ProPetro has retired approximately 13 million shares, representing about 11% of its outstanding common stock since the inception of the share repurchase program [18] - The company has secured letters of intent for approximately 75 megawatts of long-term Pro Power service capacity with two operators in the Permian Basin [9] Q&A Session Summary Question: Focus on Pro Power opportunities - Management confirmed that while the initial focus is on the Permian Basin, they are open to opportunities outside the basin as they grow [25][27] Question: Changes in fleet operation numbers - The reduction in fleet numbers is attributed to both customer activity reductions and the company's choice to avoid low pricing, with a focus on maintaining operational efficiency [28][30] Question: Pricing for pressure pumping equipment - Management noted that contracted pricing remains steady, while spot pricing is more fluid, with some competitors pricing unsustainably low [39][42] Question: Capital allocation framework - The power business and Force Electric offering are prioritized due to known returns, with ongoing flexibility to allocate capital across various opportunities [44][48] Question: Future fleet builds and returns on power generation - Management expects to transition to more electric fleets at a rate of one to two per year, with anticipated returns on power generation assets around four-year paybacks [71][74]

Financial Performance - ProPetro's Q1 2025 revenue reached $359 million[15], a 12% increase compared to $321 million in Q4 2024[27] - The company's Adjusted EBITDA for Q1 2025 was $73 million[16], a 38% increase from $53 million in Q4 2024[27] - ProPetro generated $22 million in Free Cash Flow in Q1 2025[14], compared to $13 million in Q4 2024[27] - Net income for Q1 2025 was $10 million or $009 per share[27], a significant improvement from a net loss of $17 million or -$017 per share in Q4 2024[27] Strategic Initiatives - ProPetro is strategically positioned in the Permian Basin, with 100% of its revenue derived from this region[23] - The company has invested over $1 billion since 2022 in asset refreshment, new technology, and service diversification[11] - ProPetro is expanding its services with PROPWR, a comprehensive power generation solution, to meet growing electricity demand[13] - The company has a $200 million share repurchase program, with $111 million already repurchased and $89 million remaining[33, 34] Since inception through March 31, 2025, 13 million shares (11%) outstanding were retired[37] Fleet and Technology - ProPetro is transitioning its fleet to dual-fuel and electric technologies, including FORCE® electric hydraulic fracturing fleets[47] - Tier IV DGB dual-fuel fleets are achieving natural gas substitution rates greater than 60%[57] - The company has secured letters of intent for approximately 75 MW of long-term PROPWR service capacity with two operators in the Permian Basin[69]

Financial Data and Key Metrics Changes - ProPetro generated total revenue of $359 million, an increase of 12% compared to the prior quarter [15] - Net income totaled $10 million or $0.09 per diluted share, compared to a net loss of $17 million or $0.17 per diluted share for the fourth quarter of 2024 [16] - Adjusted EBITDA was $73 million, representing 20% of revenue and an increase of 38% compared to the prior quarter [16] - Free cash flow was $22 million, with net cash provided by operating activities at $55 million [16] Business Line Data and Key Metrics Changes - The company operates seven Tier four DGB dual fuel fleets, with two under long-term contracts, and four Force fleets also under long-term contracts [8][9] - Approximately 75% of the fleet is now comprised of next-generation services, which are in high demand [7] Market Data and Key Metrics Changes - The company anticipates operating between 13 and 14 fleets in the second quarter, a reduction from the 14 to 15 fleets in the first quarter due to market conditions [13] - The Permian Basin is expected to see a downtick in fleet activity, with projections of running 75 to 85 fleets in June [54] Company Strategy and Development Direction - ProPetro's strategy focuses on capital-efficient asset investments, disciplined M&A, and transitioning to electric fleets to withstand market volatility [6][11] - The company is committed to maintaining a strong balance sheet and liquidity profile while pursuing growth opportunities in the power sector and fleet conversion [20] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the uncertain near-term outlook due to declining oil prices influenced by tariffs and production increases, but remains confident in the company's ability to generate free cash flow and long-term value [13][21] - The company emphasizes the importance of maintaining asset health and not compromising on operational standards during market downturns [13] Other Important Information - ProPetro plans to extend its share repurchase program for another year, having retired approximately 13 million shares since May 2023 [19][20] - The company has a strong liquidity position, with total cash of $63 million and total liquidity of $197 million at the end of the first quarter [19] Q&A Session Summary Question: Opportunities in Pro Power and focus on the Permian Basin - Management indicated that while the initial focus for Pro Power is on the Permian Basin, they are open to opportunities outside the basin as they develop [26][28] Question: Changes in fleet operation numbers - The reduction in fleet numbers is attributed to both customer activity reductions and the company's choice to avoid low pricing, with a focus on maintaining long-term contracts [29][30] Question: Pricing for pressure pumping equipment - Management noted that contracted pricing remains steady, while spot pricing is more fluid, with some competitors pricing unsustainably low [38][42] Question: Capital allocation framework - The power business and Force Electric offering are prioritized in capital allocation due to known returns, while maintaining flexibility for M&A and share repurchases [46][49] Question: Future fleet builds and electrification - Management expects to continue transitioning to electric fleets at a rate of one to two per year, emphasizing the long-term growth potential in this area [71][72] Question: Returns on power generation opportunities - Expected cash-on-cash paybacks for power generation assets are around four years, generating approximately $300,000 of EBITDA per megawatt per year [74][75]

Core Viewpoint - ProPetro Holding (PUMP) reported quarterly earnings of $0.09 per share, exceeding the Zacks Consensus Estimate of $0.06 per share, but down from $0.18 per share a year ago, indicating a 50% earnings surprise [1][2] Financial Performance - ProPetro's revenues for the quarter ended March 2025 were $359.42 million, surpassing the Zacks Consensus Estimate by 5.53%, but down from $405.84 million year-over-year [2] - Over the last four quarters, the company has exceeded consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - ProPetro shares have declined approximately 43.5% since the beginning of the year, contrasting with the S&P 500's decline of 6% [3] - The current consensus EPS estimate for the upcoming quarter is $0.08 on revenues of $358.68 million, and for the current fiscal year, it is $0.29 on revenues of $1.41 billion [7] Industry Outlook - The Oil and Gas - Field Services industry is currently ranked in the top 30% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact ProPetro's stock performance [5][6]

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]