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[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 company's Q1 2024 results show decreased revenue and net income year-over-year, alongside stable operating cash flow and a growing asset base [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets grew to $1.53 billion by March 31, 2024, driven by increased cash and operating lease assets, while total liabilities also rose Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $46,458 | $33,354 | | Accounts receivable, net | $273,709 | $237,012 | | Total current assets | $360,036 | $310,809 | | Property and equipment, net | $947,138 | $967,116 | | Operating lease right-of-use assets | $109,362 | $78,583 | | **Total Assets** | **$1,534,260** | **$1,480,312** | | **Liabilities & Equity** | | | | Accounts payable | $189,216 | $161,441 | | Total current liabilities | $303,984 | $271,149 | | Long-term debt | $45,000 | $45,000 | | Noncurrent operating lease liabilities | $56,481 | $38,600 | | **Total Liabilities** | **$536,106** | **$481,920** | | **Total Shareholders' Equity** | **$998,154** | **$998,392** | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2024 service revenue and operating income declined year-over-year, resulting in lower net income and earnings per share Q1 2024 vs. Q1 2023 Statement of Operations (in thousands, except per share data) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Service Revenue | $405,843 | $423,570 | | Cost of services | $288,641 | $280,486 | | Depreciation and amortization | $52,206 | $38,271 | | Loss on disposal of assets | $6,458 | $34,607 | | **Operating Income** | **$30,312** | **$41,460** | | **Net Income** | **$19,930** | **$28,733** | | **Diluted EPS** | **$0.18** | **$0.25** | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow remained stable in Q1 2024, while lower capital expenditures reduced investing cash outflows and share repurchases increased financing cash outflows Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $74,822 | $73,060 | | Net cash used in investing activities | ($33,847) | ($113,750) | | Net cash used in financing activities | ($27,871) | ($3,379) | | **Net Increase (Decrease) in Cash** | **$13,104** | **($44,069)** | - The decrease in cash used for investing activities was mainly due to a reduction in capital expenditures from **$114.8 million in Q1 2023 to $34.6 million in Q1 2024**[21](index=21&type=chunk) - The increase in cash used for financing activities was primarily driven by **$22.5 million in share repurchases** during Q1 2024, which did not occur in the same period of 2023[21](index=21&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Key disclosures include a change in segment reporting, an expanded share repurchase program, and significant new lease agreements for equipment - Effective Q4 2023, the company revised its segment reporting, with the **Hydraulic Fracturing and Wireline operating segments now reported separately**[64](index=64&type=chunk) - The company entered into operating leases for four FORCE electric-powered hydraulic fracturing fleets and a finance lease for power generation equipment, **significantly increasing lease-related assets and liabilities**[100](index=100&type=chunk)[119](index=119&type=chunk) - Subsequent to the quarter end, the company entered into a **three-year contract with Exxon Mobil Corporation** to provide services with two FORCE electric-powered hydraulic fracturing fleets[136](index=136&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Revenue and Adjusted EBITDA declined due to pricing pressure and reduced activity, while the company maintains strong liquidity and continues its fleet transition [Results of Operations](index=33&type=section&id=Results%20of%20Operations) Q1 2024 revenue fell 4.2% year-over-year, driven by a 7.5% decline in the Hydraulic Fracturing segment, leading to lower overall profitability Q1 2024 vs. Q1 2023 Results of Operations (in thousands) | Metric | Q1 2024 | Q1 2023 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | **$405,843** | **$423,570** | **($17,727)** | **(4.2)%** | | Hydraulic Fracturing Revenue | $309,300 | $334,441 | ($25,141) | (7.5)% | | Wireline Revenue | $60,805 | $62,560 | ($1,755) | (2.8)% | | **Net Income** | **$19,930** | **$28,733** | **($8,803)** | **(30.6)%** | | **Adjusted EBITDA** | **$93,395** | **$119,165** | **($25,770)** | **(21.6)%** | | Adjusted EBITDA Margin | 23.0% | 28.1% | - | (18.1)% | - The decrease in hydraulic fracturing revenue was primarily due to a decline in **effectively utilized fleets from approximately 16 to 15**, along with decreased customer activity and pricing[170](index=170&type=chunk) - The increase in revenue for the 'All Other' category was mainly driven by the **Par Five acquisition in December 2023**, which contributed $9.6 million in revenue during the quarter[167](index=167&type=chunk)[172](index=172&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity of $202.0 million, expanded its share repurchase program, and plans significant capital expenditures for 2024 - Total liquidity as of March 31, 2024, was approximately **$202.0 million**, consisting of $46.5 million in cash and $155.5 million of availability under the ABL Credit Facility[184](index=184&type=chunk) - The share repurchase program was increased by an additional $100 million for a **total of $200 million** and extended to May 31, 2025; in Q1 2024, the company repurchased **3.0 million shares for $22.5 million**[185](index=185&type=chunk) - Projected capital expenditures for 2024 are expected to range between **$200 million and $250 million**, primarily for maintenance and strategic equipment conversions[189](index=189&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's market risk profile has not materially changed from the disclosures in its 2023 Annual Report on Form 10-K - **No material changes in market risk** were reported as of March 31, 2024, compared to the disclosures in the 2023 Form 10-K[203](index=203&type=chunk) [Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls were deemed ineffective due to a material weakness in internal control related to inadequate segregation of duties, with remediation underway - Disclosure controls and procedures were concluded to be **ineffective as of March 31, 2024**, due to a previously reported material weakness[205](index=205&type=chunk) - The material weakness relates to IT controls where manual journal entry approvers could modify entries before posting, stemming from **inadequate segregation of duties**[206](index=206&type=chunk) - Remediation efforts during Q1 2024 included implementing a technical solution to prevent modification of journal entries by approvers and strengthening monitoring controls; the **weakness is not yet considered fully remediated**[207](index=207&type=chunk)[208](index=208&type=chunk) [PART II – OTHER INFORMATION](index=40&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Legal Proceedings](index=40&type=section&id=Item%201.%20Legal%20Proceedings) The company is undergoing routine tax audits by the Texas Comptroller, with a $6.0 million settlement expense accrued for one specific audit - The company is subject to several routine audits by the Texas Comptroller of Public Accounts; an estimated **settlement expense of $6.0 million** has been accrued for an audit of motor vehicle and fuel taxes[133](index=133&type=chunk) [Risk Factors](index=40&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors have occurred since its 2023 Annual Report on Form 10-K - **No material changes to risk factors** were reported compared to the 2023 Form 10-K[212](index=212&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=40&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased $22.5 million of its common stock in Q1 2024 and subsequently increased its total repurchase authorization to $200 million Share Repurchases for Q1 2024 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | January 2024 | 511,215 | $8.01 | | February 2024 | 963,110 | $7.67 | | March 2024 | 1,493,735 | $7.38 | | **Total** | **2,968,060** | **$7.58** | - On April 24, 2024, the Board approved an increase of the share repurchase program by an additional $100 million, bringing the **total authorization to $200 million**, and extended the program's expiration to May 31, 2025[213](index=213&type=chunk) [Other Information](index=40&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, modified, or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter - No director or officer of the Company adopted, modified or terminated any **"Rule 10b5-1 trading arrangement"** or **"non-Rule 10b5-1 trading arrangement"** during Q1 2024[217](index=217&type=chunk)

[Disclosures & Non-GAAP Measures](index=2&type=section&id=Disclosures%20%26%20Non-GAAP%20Measures) This section provides essential disclaimers regarding forward-looking statements and defines non-GAAP financial measures used in the report [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) ProPetro's forward-looking statements are subject to risks and uncertainties, including macroeconomic and geopolitical factors, potentially causing material differences in actual results - Forward-looking statements are subject to **risks and uncertainties**, including **macroeconomic uncertainty**, **geopolitical conflicts** (Israel-Gaza, Ukraine war), **inflation**, **central bank policies**, and **bank failures**, which may cause **actual results to differ materially**[4](index=4&type=chunk) - The company's forward-looking statements cover **hydrocarbon production**, **business strategy**, **financial results**, **fleet utilization**, **technology performance**, **capital expenditures**, and **share repurchase programs**[3](index=3&type=chunk) [Non-GAAP Reconciliations](index=3&type=section&id=Non-GAAP%20Reconciliations) ProPetro defines Adjusted EBITDA and Free Cash Flow as non-GAAP measures, with a reconciliation table provided, adjusting net income for specific items and calculating cash flow from operations less investing activities - **Adjusted EBITDA** is defined as **net income (loss) adjusted** for interest, taxes, depreciation, amortization, loss/gain on disposal of assets, stock-based compensation, other (income) expense, other general and administrative expenses, and retention bonus and severance expense[6](index=6&type=chunk) - **Free Cash Flow** is defined as **net cash provided by operating activities less net cash used in investing activities**[6](index=6&type=chunk) Non-GAAP Reconciliations (Three Months Ended) | (in thousands) | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Net income (loss) | $19,930 | ($17,109) | | Depreciation and amortization | 52,206 | 56,137 | | Interest expense | 2,029 | 2,292 | | Income tax expense (benefit) | 9,758 | (1,250) | | Loss on disposal of assets | 6,458 | 10,898 | | Stock-based compensation | 3,742 | 3,846 | | Other (income) expense, net | (1,405) | 7,784 | | Other general and administrative expenses, net | 59 | 1,310 | | Retention bonus and severance expense | 618 | 360 | | Adjusted EBITDA | $93,395 | $64,268 | [Company Overview & Investment Thesis](index=4&type=section&id=Company%20Overview%20%26%20Investment%20Thesis) This section presents ProPetro's core investment rationale, company snapshot, and premium completions services, highlighting its market position and financial performance [Investment Thesis](index=4&type=section&id=Investment%20Thesis) ProPetro's investment thesis centers on increasing free cash flows via reduced capital expenditures and M&A, utilizing its refreshed assets, new technology, and superior field performance for top customers - The investment thesis focuses on increasing **free cash flows** from **reduced capital expenditures** and **targeted M&A**[9](index=9&type=chunk) - ProPetro boasts a **refreshed asset base**, **new technology**, **diversified service offerings**, and **superior field performance** for leading customers in top hydrocarbon basins[9](index=9&type=chunk) [Company Snapshot](index=5&type=section&id=Company%20Snapshot) ProPetro, a premium Permian Basin oilfield services leader, specializes in hydraulic fracturing, cementing, and wireline, reporting $406 million revenue, $20 million net income, and $93 million Adjusted EBITDA in 1Q24 - ProPetro is a **premium oilfield services leader** in the Permian Basin, providing **Hydraulic Fracturing**, **Cementing**, and **Wireline services**[11](index=11&type=chunk) 1Q24 Key Financials | Metric | Amount | | :--- | :--- | | 1Q24 Revenue | $406 million | | 1Q24 Net Income | $20 million | | 1Q24 Adjusted EBITDA | $93 million | [Premium Completions Services](index=6&type=section&id=Premium%20Completions%20Services) ProPetro's premium completions services primarily consist of Hydraulic Fracturing, which is estimated to be the largest revenue contributor in 2024, complemented by Cementing and Wireline services - ProPetro's 2024 estimated revenue mix is dominated by **Hydraulic Fracturing**, supported by **Cementing** and **Wireline services**[13](index=13&type=chunk) [First Quarter 2024 Performance & Strategic Initiatives](index=7&type=section&id=First%20Quarter%202024%20Performance%20%26%20Strategic%20Initiatives) This section details ProPetro's strong 1Q24 financial performance, strategic highlights including new contracts and share repurchases, and its capital allocation strategy focused on fleet transformation and acquisitions [Recent Highlights & Strategic Pillars](index=7&type=section&id=Recent%20Highlights%20%26%20Strategic%20Pillars) ProPetro saw strong 1Q24 improvements, securing ExxonMobil contracts, expanding share repurchases, and focusing on fleet transition, M&A, and optimization for durable earnings and free cash flow - **1Q24** saw sequential improvements: **Revenues +17%**, **Adjusted EBITDA +45%**, with increasing **free cash flows**[14](index=14&type=chunk) - Secured **three-year contracts** with ExxonMobil for two **FORCE™ electric hydraulic fracturing fleets** and **Silvertip wireline services**[14](index=14&type=chunk) - Repurchased and retired **8.8 million shares** since May 2023, representing **~90% of shares issued** for the Silvertip acquisition, and increased the share repurchase program to **$200 million**, extending it to May 2025[14](index=14&type=chunk) - Strategic pillars include **fleet transition**, **opportunistic strategic transactions**, **optimization**, **strong financial foundation**, and **innovative technologies** to generate **durable earnings** and **free cash flow**[14](index=14&type=chunk) [Financial Highlights](index=8&type=section&id=Financial%20Highlights) ProPetro's 1Q24 showed strong sequential financial improvement, with revenue up 17% to $406 million, net income at $20 million, and Adjusted EBITDA up 45% to $93 million, driven by fleet reinitiations and strategy Financial Highlights: 1Q24 vs 4Q23 | (in millions except %'s and per share data) | 1Q24 | 4Q23 | Change | | :--- | :--- | :--- | :--- | | TOTAL REVENUE | $406 | $348 | +17% | | NET INCOME | $20 | ($17) | +$37 | | EARNINGS PER SHARE | $0.18 | ($0.16) | +$0.34 | | ADJUSTED EBITDA | $93 | $64 | +45% | - **1Q24 results** benefited from customers reinitiating dedicated fleets and the realization of ProPetro's strategy, driving **lower capital expenditures**, growing **free cash flow**, and **strong liquidity**[16](index=16&type=chunk) [Capital Allocation Strategy](index=9&type=section&id=Capital%20Allocation%20Strategy) ProPetro's capital allocation strategy focuses on high-grading investments, with over $1 billion invested in 2022-2023 for fleet transformation and acquisitions, alongside significant shareholder returns through an expanded share repurchase program - The capital allocation strategy aims to **high-grade investments**, with **over $1 billion invested in 2022 and 2023** for **fleet transformation** and **strategic acquisitions**[10](index=10&type=chunk)[20](index=20&type=chunk)[21](index=21&type=chunk) - The strategy includes significant **capital returns to shareholders** through an **expanded share repurchase program**, reflecting conviction in the company's strategy[16](index=16&type=chunk)[39](index=39&type=chunk)[40](index=40&type=chunk) [Investing in Our Future](index=10&type=section&id=Investing%20in%20Our%20Future) ProPetro invested over $1 billion in 2022-2023 via Capex and acquisitions, transforming its frac fleet to Next-Gen Tier IV DGB dual-fuel and FORCE™ electric technologies, and acquiring high EBITDA to free cash flow conversion businesses - **Over $1 billion** was invested in 2022 and 2023, including **$365 million in 2022 Capex**, **$310 million in 2023 Capex**, **$180 million for 2023 Leased Electric Fleets**, and **$173 million for 2022 & 2023 Acquisitions**[21](index=21&type=chunk) - Investments focused on transforming the frac fleet to **Next-Generation Tier IV DGB dual-fuel** and **FORCE™ electric**, and acquiring businesses with **high EBITDA to free cash flow conversion**[23](index=23&type=chunk) [Fleet Transformation](index=11&type=section&id=Fleet%20Transformation) ProPetro is transforming its fleet to next-gen Tier IV DGB dual-fuel and FORCE™ electric technologies, aiming for a younger, more desirable fleet that leverages natural gas for cost savings and lower emissions, attracting premium customer payments - ProPetro is transforming its fleet to **Next-Generation Tier IV DGB dual-fuel** and **FORCE™ electric**, creating one of the **youngest and most desirable fleets** in the industry[24](index=24&type=chunk)[23](index=23&type=chunk) - The fleet transformation aims for **lower capital intensity**, **higher operating efficiency**, and **significant annual savings ($10 million to $20+ million)** by utilizing natural gas[30](index=30&type=chunk)[31](index=31&type=chunk) [Next-Generation Dual-Fuel and Electric Fleets](index=11&type=section&id=Next-Generation%20Dual-Fuel%20and%20Electric%20Fleets) ProPetro's fleet transformation focuses on Tier IV DGB dual-fuel and electric technology, creating a younger, more desirable fleet that offers significant annual natural gas savings, lower capital intensity, and higher operating efficiency, attracting premium customers - The fleet transformation to **Tier IV DGB dual-fuel** and **electric technology** aims for one of the **youngest and most desirable fleets** in the industry[24](index=24&type=chunk) - Using natural gas can result in annualized savings of **$10 million to $20+ million** due to diesel/natural gas cost differences[30](index=30&type=chunk) - Customers are willing to pay a **premium** for fuel savings and lower emissions provided by these advanced fleets[31](index=31&type=chunk) [Tier IV DGB Dual-Fuel Fleet Performance](index=12&type=section&id=Tier%20IV%20DGB%20Dual-Fuel%20Fleet%20Performance) ProPetro's seven Tier IV DGB dual-fuel fleets demonstrate strong performance, achieving 60-70% natural gas substitution rates for diesel, significantly reducing costs and emissions for customers - **Seven Tier IV DGB fleets** are delivering **60-70% natural gas substitution rates**, reducing costs and emissions for customers[32](index=32&type=chunk) [FORCE™ Electric-powered Hydraulic Fracturing Fleet Update](index=13&type=section&id=FORCE%E2%84%A2%20Electric-powered%20Hydraulic%20Fracturing%20Fleet%20Update) ProPetro operates three FORCE™ electric fleets, with a fourth deploying by June 2024, characterized by high reliability, proven performance, lower capital intensity, and significant fuel savings with nearly 100% diesel displacement, all supported by contracts - **Three FORCE™ fleets** are operating, with a **fourth to be deployed by June 2024**[34](index=34&type=chunk) - **FORCE™ fleets** offer **high equipment reliability**, **proven performance**, **lower capital intensity**, and **significant fuel savings** with **~100% diesel displacement**[34](index=34&type=chunk) - All deployments of **FORCE™ fleets** are supported by contracts[34](index=34&type=chunk) [Strategic Acquisitions](index=14&type=section&id=Strategic%20Acquisitions) ProPetro strategically acquired Silvertip Completion Services (2022) and Par Five Energy Services (2023), expanding complementary completions offerings, enhancing free cash flow, and reducing future capital spending - Acquired **Silvertip Completion Services** in November 2022 and **Par Five Energy Services** in December 2023[35](index=35&type=chunk)[37](index=37&type=chunk) - Acquisitions expanded **complementary completions service offerings**, enhanced **free cash flow generation**, and are expected to **reduce future capital spending**[36](index=36&type=chunk)[38](index=38&type=chunk) [Silvertip Completion Services Acquisition](index=14&type=section&id=Silvertip%20Completion%20Services%20Acquisition) The $148 million acquisition of Silvertip Completion Services in November 2022 expanded ProPetro's Permian Basin wireline perforating and pumpdown services, adding 24 wireline units and 16 pumpdown spreads, enhancing free cash flow and reducing future capital spending - Acquired **Silvertip Completion Services** in November 2022 for **$148 million**, expanding **wireline perforating and pumpdown services** in the Permian Basin[35](index=35&type=chunk)[36](index=36&type=chunk) - Silvertip added **24 wireline units** and **16 pumpdown spreads**, contributing to **substantial free cash flow generation** and **reducing future capital spending**[36](index=36&type=chunk) [Par Five Energy Services Acquisition](index=15&type=section&id=Par%20Five%20Energy%20Services%20Acquisition) ProPetro acquired Par Five Energy Services in December 2023, adding premier cementing services in the Delaware Basin, diversifying completions offerings, enhancing free cash flow, and including best-in-class cement lab and bulk plant facilities - Acquired **Par Five Energy Services** in December 2023, adding **premier cementing services** in the Delaware Basin[37](index=37&type=chunk)[38](index=38&type=chunk) - Par Five operates **14 cementing spreads** and includes **best-in-class cement lab and bulk plant facilities**, contributing to **substantial free cash flow generation**[38](index=38&type=chunk) [Capital Returns](index=16&type=section&id=Capital%20Returns) ProPetro increased its share repurchase program by $100 million to $200 million, extended to May 2025, having repurchased and retired 8.8 million shares at an average cost of $8.47 per share since inception, reflecting confidence in its strategy - Share repurchase program increased by **$100 million to $200 million** and extended to **May 2025**[40](index=40&type=chunk) - Repurchased and retired **8.8 million shares** since inception through March 31, 2024, at an average cost per share of **$8.47**[40](index=40&type=chunk) [Industry Outlook & Market Positioning](index=17&type=section&id=Industry%20Outlook%20%26%20Market%20Positioning) This section analyzes the oilfield services valuation, industry transformation towards an industrialized model, sustainable future outlook, global hydrocarbon macro environment, and ProPetro's strategic focus on the Permian Basin [Oilfield Services Valuation](index=17&type=section&id=Oilfield%20Services%20Valuation) ProPetro and its direct peers in the pressure pumping sector continue to be valued at a discount compared to other oilfield service companies, as evidenced by the Enterprise Value to 2024E EBITDA metric - ProPetro and its direct peers in the pressure pumping space are valued at a **discount** relative to other oilfield service companies, based on **Enterprise Value to 2024E EBITDA**[43](index=43&type=chunk) [Industry Transformation](index=18&type=section&id=Industry%20Transformation) The oil services industry is transforming to an industrialized model, driven by improved capital discipline, increased industrial technology deployment, and a focus on cash flow generation, addressing historical overbuild and capital destruction for a sustainable operating model - The oil services industry is transforming to an **industrialized model**, characterized by **improved capital discipline** and increasing deployment of **industrial technologies**[47](index=47&type=chunk) - This transformation addresses historical **capital destruction and overbuild**, leading to a greater focus on **cash flow generation** and a **sustainable, capacity-constrained operating model**[47](index=47&type=chunk)[49](index=49&type=chunk) [Sustainable Industry Future](index=19&type=section&id=Sustainable%20Industry%20Future) The industry shifted from pre-COVID booming global economy to current suppressed oil supply, rebounded demand, and strong balance sheets with capital discipline; hydrocarbons remain crucial for global prosperity and energy security, positioning ProPetro to capitalize on long-term trends - Current industry dynamics include **suppressed oil supply**, largely **rebounded energy demand**, **strong balance sheets**, and **capital discipline**, contrasting with pre-COVID booming global economy and robust capital markets[50](index=50&type=chunk) - **Hydrocarbons** are expected to remain vital for **global prosperity and energy security**, despite increasing alternative energy, positioning ProPetro to leverage **long-term industry fundamentals** and its **Permian Basin presence**[51](index=51&type=chunk) [Global Hydrocarbon Macro Environment](index=20&type=section&id=Global%20Hydrocarbon%20Macro%20Environment) A bullish long-term hydrocarbon demand outlook and constrained supply from global underinvestment indicate a sustainable upcycle for durable earnings and consistent free cash flow, with petroleum and natural gas projected as most-used fuels in the U.S. through 2050, despite lagging global upstream capital expenditure - A **bullish long-term demand outlook** and **constrained supply** due to global underinvestment support a **sustainable upcycle** for **durable earnings** and **consistent free cash flow**[52](index=52&type=chunk) - **Petroleum and natural gas** are projected to be the **most-used fuels in the United States through 2050**[53](index=53&type=chunk) - Global upstream E&P spending continues to **lag demand**, remaining below the **2010-2014 average**[55](index=55&type=chunk) [Permian Basin Focus](index=21&type=section&id=Permian%20Basin%20Focus) The Permian Basin, a global leader in oil and natural gas production with vast resources and high efficiency, is ProPetro's strategic focus, generating approximately 98% of its revenue and ensuring sustainable demand for its services - The **Permian Basin** leads the world in **oil and natural gas production**, renowned for its **vast resources** and **high activity/production efficiency**[57](index=57&type=chunk)[61](index=61&type=chunk) - Approximately **98% of ProPetro's revenue** comes from the **Permian Basin**, ensuring **sustainable and resilient demand** for its services[61](index=61&type=chunk) [Corporate Vision, Values & Governance](index=22&type=section&id=Corporate%20Vision%2C%20Values%20%26%20Governance) This section outlines ProPetro's vision, premium service offerings, commitment to ESG, capital allocation framework, leadership team, and investor contacts [Who We Are and Where We Are Going](index=22&type=section&id=Who%20We%20Are%20and%20Where%20We%20Are%20Going) ProPetro is a customer-focused, team-driven company harnessing the Permian Basin's potential, transitioning to a young, efficient, capital-light fleet powered by natural gas and electricity to reduce emissions and invest in longer-life assets with disciplined capital allocation - ProPetro is **customer-focused** and **team-driven**, leveraging the **Permian Basin's potential**[63](index=63&type=chunk) - The company is transitioning to a **young, efficient, more capital-light fleet** powered by **natural gas and electricity**, aiming to **reduce emissions** and invest in **longer-life assets**[63](index=63&type=chunk) [Unrivaled Premium Completions Services](index=23&type=section&id=Unrivaled%20Premium%20Completions%20Services) ProPetro offers unrivaled premium completions services, including Hydraulic Fracturing, Cementing, and Wireline, with Hydraulic Fracturing as the premier service line delivering industry-leading performance and customized treatments for complex jobs - ProPetro provides **premium completions services**, including **Hydraulic Fracturing**, **Cementing**, and **Wireline**[64](index=64&type=chunk) - **Hydraulic Fracturing** is ProPetro's **premier service line**, delivering **industry-leading performance**, and the company offers **customized treatments** for complex jobs[64](index=64&type=chunk) [Commitment to ESG](index=24&type=section&id=Commitment%20to%20ESG) ProPetro demonstrates strong ESG commitment through optimized operations, fleet transition, and an accident-free workplace, including strategic investments in dual-fuel and electric fleets, minimizing idle time and spills, integrating cleaner-burning natural gas, and fostering a strong training and development culture - ProPetro is committed to **ESG** through **optimized operations**, **fleet transition**, and an **accident-free workplace**[65](index=65&type=chunk)[69](index=69&type=chunk) - Key initiatives include **strategic investments in dual-fuel and electric fleets**, **remote engineering, logistics, maintenance systems**, minimizing **idle time and spills**, and integrating **cleaner-burning natural gas** to displace diesel[66](index=66&type=chunk)[67](index=67&type=chunk)[68](index=68&type=chunk)[72](index=72&type=chunk) - The company fosters a **strong training and development culture** and has a dedicated **heavy haul driving team** to reduce road hazards[73](index=73&type=chunk) [Capital Allocation Framework](index=25&type=section&id=Capital%20Allocation%20Framework) ProPetro's capital allocation framework aims to improve free cash flow and value distribution while maintaining a strong balance sheet, focusing on optimizing operations with relevant technologies, transitioning the fleet to natural gas and electric offerings, and pursuing disciplined growth through M&A - The **capital allocation framework** aims to improve **free cash flow** and **value distribution** while maintaining a **strong balance sheet**[74](index=74&type=chunk)[75](index=75&type=chunk) - Key pillars include **optimizing operations** with relevant technologies, transitioning the fleet to **natural gas and electric offerings**, and **disciplined growth** through strategic M&A[74](index=74&type=chunk) [Our Leadership](index=26&type=section&id=Our%20Leadership) ProPetro's leadership team and Board of Directors are committed to shareholder value creation, comprising experienced professionals in key executive roles such as CEO Sam Sledge, President & COO Adam Muñoz, and CFO David Schorlemer, alongside independent directors - Company management includes **Sam Sledge (CEO)**, **Adam Muñoz (President & COO)**, **David Schorlemer (CFO)**, **Shelby Fietz (CCO)**, **Celina Davila (CAO)**, and **Jody Mitchell (General Counsel)**[77](index=77&type=chunk) - The Board of Directors includes **Phillip A. Gobe (Chairman)**, **Michele Vion (Independent Director, Compensation Committee Chair)**, **Mary Ricciardello (Independent Director)**, and **G. Larry Lawrence (Independent Director)**[77](index=77&type=chunk) [Investor Contacts](index=27&type=section&id=Investor%20Contacts) This section provides contact information for ProPetro's investor relations, including David Schorlemer (Chief Financial Officer) and Matt Augustine (Director, Corporate Development and Investor Relations), along with the corporate headquarters address and website - Investor relations contacts are **David Schorlemer (CFO)** and **Matt Augustine (Director, Corporate Development and Investor Relations)**[79](index=79&type=chunk)

ProPetro Holding Corp. (NYSE:PUMP) Q1 2024 Earnings Conference Call May 1, 2024 9:00 AM ET Company Participants Matt Augustine – Director of Corporate Development and 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 Derek Podhaizer – Barclays Kurt Hallead – Benchmark Arun Jayaram – JPMorgan Waqar Syed – ATB Capital Markets Stephen Gengaro – Stifel Sco ...

Investor Presentation First Quarter 2024 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," "project," "budget ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________ FORM 10-K ______________________________ ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 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 charte ...

PROPETRO® Investor Presentation Fourth Quarter and Full Year 2023 February 21, 2024 INE SOL HIL Sma 品牌 Forward-Looking Statements Except for historical information contained herein, the statements and information in this presentation, including the oral statements made in c looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Statements t depend upon or refer to future events or conditions or that include the words "may." "could." " ...

ProPetro Holding Corp. (NYSE:PUMP) Q4 2023 Earnings Conference Call February 21, 2024 9:00 AM ET Company Participants Matt Augustine - Director, Corporate Development and IR Sam Sledge - CEO David Schorlemer - CFO Conference Call Participants Luke Lemoine - Piper Sandler Derek Podhaizer - Barclays John Daniel - Daniel Energy Partners Arun Jayaram - JPMorgan Chase Scott Gruber - Citigroup Operator Good day and welcome to the ProPetro Holding Corp. Fourth Quarter 2023 Conference Call. All participants will be ...

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 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 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) ______________________________ Delaware 26-3685382 ( ...