ProPetro (PUMP) - 2024 Q4 - Annual Report

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]