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]

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, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Midland, Texas 79701 (Address of principal executive offices) Registrant's telephone number, including area code: (432) 688-0012 | Title of eac ...

Financial Data and Key Metrics Changes - Revenue for the full-year 2022 was $1.3 billion, a 46% increase year-over-year [7] - Adjusted EBITDA increased 134% year-over-year to $317 million, driven by improved pricing and cost management [7] - Fourth quarter net income was $13 million or $0.12 per diluted share, compared to $10 million or $0.10 per diluted share in the prior quarter [8] - Total cash as of December 31, 2022, was $89 million, with total liquidity of $155 million [10] Business Line Data and Key Metrics Changes - The fourth quarter generated $349 million of revenue, a 5% increase from the third quarter, attributed to the acquisition of Silvertip [28] - Silvertip posted $20 million of revenue for January, marking the highest monthly total in its history [9] - Cost of services for the fourth quarter was $243 million, up from $224 million in the third quarter, driven by the Silvertip acquisition and cost inflation [121] Market Data and Key Metrics Changes - The company noted that the Permian Basin remains structurally undersupplied, particularly for next-generation hydraulic fracturing services [106][118] - The transition to natural gas and electric capabilities is expected to provide a competitive advantage in the market [32][95] Company Strategy and Development Direction - The company is focused on transitioning two-thirds of its fleet to natural gas-burning and electric capabilities by the end of 2023 [32] - A disciplined approach to capital deployment is being pursued to enable shareholder returns and strategic acquisitions [125] - The company plans to issue its first sustainability report in 2023, highlighting its commitment to reduced emissions and community efforts [25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about valuation improvement across the oilfield services space and the company's long-term role in energy production [12] - The company anticipates meaningful positive free cash flow in the second half of 2023, supported by a front-loaded CapEx program [10] - Management acknowledged the challenges posed by inflation and supply chain constraints but emphasized the company's operational efficiency [96][100] Other Important Information - The company completed the acquisition of Silvertip Completion Services, enhancing its position as a leading completions-focused oilfield services company [24] - The company is transitioning to a more capital-light asset profile while reducing maintenance CapEx [123] Q&A Session Summary Question: What is the current pricing dynamic in the market? - Management indicated that pricing is in a healthy spot and remains conservative, with expectations for meaningful returns to free cash flow if execution continues [20] Question: Is the fleet movement largely completed? - Management confirmed that the repositioning of the fleet is mostly complete, with operational efficiency maintained [39][47] Question: What is the timeline for the deployment of electric fleets? - The sixth DGB unit is currently operational, with the seventh expected in April-May and the first two electric fleets in July-August [52] Question: What are the expectations for shareholder returns? - The company is shifting focus towards shareholder returns and strategic transactions as the transition story winds down [78] Question: How is the company addressing fleet attrition? - Management noted that the new fleets will primarily replace aging legacy equipment, with a focus on maintaining operational efficiency [131]

Forward-Looking Statements © 2023 ProPetro Holding Corp. All Rights Reserved. 2 Net income (loss) Loss on disposal of assets Severance expense Non-GAAP Reconciliations © 2023 ProPetro Holding Corp. All Rights Reserved. 4 Snapshot $1.3 billion Headquartered in Midland, Texas 6 Booming global economy CURRENT INDUSTRY DYNAMICS Capital markets largely avoiding oil and gas - private equity groups are chasing "transition energy" and debt markets are effectively closed 0 10 20 30 40 50 1990 2000 2010 2020 2030 204 ...

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 September 30, 2022 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 ______________________________ (I.R.S. Employer Identification No.) 1706 South Midkiff, Midland, Texas 79701 (Address of princip ...

Financial Data and Key Metrics Changes - The company generated $333 million in revenue for Q3 2022, a 6% increase from $315 million in Q2 2022, driven by net pricing gains and strong cementing performance [25][30] - Adjusted EBITDA for the quarter was $90 million, representing an 18% sequential increase from $76 million in Q2 2022, with adjusted EBITDA margins expanding by almost 300 basis points to over 27% of revenue [30][32] - The company reported a net income of $10 million or $0.10 per diluted share, compared to a net loss of $33 million in the previous quarter [28] Business Line Data and Key Metrics Changes - The cementing business achieved its highest revenue quarter ever, with 100% sequential adjusted EBITDA growth [7] - The company maintained effective fleet utilization at 14.8 fleets, which was flat compared to the previous quarter [26] - Incremental adjusted EBITDA margins were nearly 80% for the total company, reflecting disciplined returns-based strategy [7][30] Market Data and Key Metrics Changes - The crude oil market is structurally undersupplied, a trend expected to continue for the next few years due to lagging global investment in new production [10] - The company anticipates steady to flat activity levels through the end of 2022 and into early 2023, influenced by E&Ps maintaining disciplined capital spending [10][11] - The market for efficient hydraulic fracturing fleets remains tight due to ongoing equipment attrition, with evidence of medium and smaller players struggling to maintain service quality [31] Company Strategy and Development Direction - The company is focused on optimizing operations, transitioning to next-generation equipment, and pursuing strategic transactions to enhance competitiveness and shareholder value [13][17] - The acquisition of Silvertip Completion Services is aimed at creating a leading completions-focused oilfield services company, expected to increase adjusted EBITDA by approximately $65 million to $75 million in 2023 [19][21] - The company plans to reduce capital spending through enhanced operational efficiencies and innovative technologies while maintaining a strong liquidity position [20][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term upcycle of the energy industry, driven by severe undersupply of crude oil and natural gas [16] - The company is optimistic about pricing momentum in the market and has secured contracts with major customers for 2023 [12][39] - Management highlighted the importance of maintaining a disciplined approach to capital allocation and operational efficiency to enhance free cash flow generation [20][39] Other Important Information - The company completed the acquisition of Silvertip for a total consideration of $150 million, which included cash, stock, and the payoff of assumed debt [21][24] - Total liquidity at the end of Q3 2022 was $155 million, which is expected to exceed $200 million post-acquisition [36] Q&A Session Summary Question: Potential for price uplift on Pioneer assets - Management indicated that a significant portion of incremental margins in Q3 was due to pricing progression, with expectations for continued pricing increases into 2023 [45][46] Question: Insights into overall market supply - Management noted that over 80% of the market's capacity is concentrated in a few major players, which are better positioned to sustain activity compared to smaller competitors [48] Question: Synergies from the Silvertip acquisition - Management clarified that the expected EBITDA from Silvertip is standalone and not modeled for synergies, although there is potential for collaboration and cross-selling [54][56] Question: CapEx for next year - Management confirmed that capital expenditures are expected to decrease in 2023, with a favorable lease agreement for electric frac fleets minimizing capital investment [62][63] Question: Demand for electric wireline - Management indicated that while demand for electric wireline is lower than for frac equipment, there is still a significant focus on transitioning to electrified offerings [89]