ProPetro Q4 Earnings Match Estimates, Revenues Beat, Expenses Down

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$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$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$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].