ProPetro (US:PUMP)2025-10-30 12:08Revenue and Financial Performance - For the three months ended September 30, 2025, total service revenue was $293.9 million, a decrease from $360.9 million in the same period of 2024, representing a decline of approximately 18.6%[175]. - Adjusted EBITDA for the three months ended September 30, 2025, was $35.2 million, down from $71.1 million in the same period of 2024, indicating a decrease of about 50.5%[177]. - The company reported a net loss of $2.4 million for the three months ended September 30, 2025, compared to a net loss of $137.1 million in the same period of 2024[177]. - Total revenue decreased by 12.8%, or $144.2 million, to $979.5 million for the nine months ended September 30, 2025, compared to $1,123.7 million for the same period in 2024[202]. - Net income improved to $82 thousand for the nine months ended September 30, 2025, compared to a net loss of $120.8 million for the same period in 2024[202]. Segment Performance - Hydraulic Fracturing segment revenue decreased by 15.2%, or $129.7 million, primarily due to decreased customer activity and pricing, despite a $41.6 million increase from AquaProp's operations[202]. - Wireline segment revenue decreased by 2.8%, or $4.4 million, attributed to decreased customer activity and pricing during the first half of fiscal year 2025[203]. - Cementing segment revenue decreased by 9.2%, or $10.2 million, mainly due to the sale of the cementing business in Vernal, Utah, which contributed $19.3 million in revenue in the prior year[204]. - Hydraulic Fracturing segment revenue decreased by 23.3%, or $63.9 million, primarily due to decreased customer activity and idling of fleets[186]. - Wireline segment revenue increased by 8.8%, or $4.2 million, attributed to increased customer activity[187]. - Cementing segment revenue decreased by 18.7%, or $7.3 million, due to the sale of the cementing business in Vernal, Utah[188]. Capital Expenditures and Investments - Capital expenditures incurred for the three months ended September 30, 2025, totaled $98.4 million, compared to $36.8 million for the same period in 2024, reflecting an increase of approximately 167.5%[175]. - Capital expenditures for the three months ended September 30, 2025, were $98.4 million, a significant increase from $36.8 million in the same period in 2024, primarily for the power generation segment[221]. - Projected capital expenditures for 2025 are expected to range between $270 million and $290 million, including approximately $80 million to $100 million for completion services and $190 million for the PROPWR business[222]. - Capital expenditures incurred for the nine months ended September 30, 2025, totaled $210.1 million, compared to $108.6 million in 2024, with significant investments in the power generation segment[230]. Operational Changes and Strategic Moves - The company formed a new subsidiary, ProPetro Energy Solutions, LLC, which began revenue-generating activities in the three months ended September 30, 2025, and has a total capacity of approximately 360 megawatts under contractual arrangements for power generation equipment[155]. - The AquaProp Acquisition expanded the company's services to include wet sand solutions, with total consideration amounting to $35.1 million, including cash and contingent consideration[157]. - The company sold its cementing business for $13.0 million, recording a gain on disposal of $8.2 million, as part of a strategic repositioning[156]. - The company expects to capitalize on drilling and completion activity in the Permian Basin, particularly in the Midland and Delaware sub-basins, which are anticipated to command a significant share of future North American E&P spending[159]. Equipment and Emissions Transition - The company transitioned its hydraulic fracturing equipment portfolio from approximately 60% lower emissions equipment in 2023 to approximately 75% as of September 30, 2025[168]. - The transition to lower emissions equipment is capital intensive, and the company is working to meet customer demands for such equipment to avoid adverse impacts on service demand[168]. Market Conditions - The average West Texas Intermediate (WTI) crude oil price declined to approximately $64 per barrel in September 2025, influenced by various geopolitical and economic factors[166]. - The Permian Basin rig count decreased from 304 at the end of 2024 to 251 at the end of September 2025, leading to reduced demand for completion services[166]. Liquidity and Financial Position - Total liquidity as of September 30, 2025, was approximately $157.6 million, consisting of $66.5 million in cash and cash equivalents and $91.1 million available under the ABL Credit Facility[218]. - The Company has a borrowing capacity of up to $225.0 million under its ABL Credit Facility, with a borrowing base of approximately $144.6 million as of September 30, 2025[232][233]. Tax and Share Repurchase - The effective tax rate for the nine months ended September 30, 2025, was 97.1%, compared to an income tax benefit and an effective tax rate of 18.8% for the same period in 2024[216]. - The Company approved an extension of its share repurchase program, allowing for the repurchase of up to $200 million of common stock through December 31, 2026, with $89.2 million remaining authorized for future repurchases as of September 30, 2025[219].