Financial Data and Key Metrics Changes - ProPetro generated total revenue of $294 million, a decrease of 10% compared to the prior quarter [19] - Net loss totaled $2 million or $0.02 loss per diluted share, an improvement from a net loss of $7 million or $0.07 loss per diluted share in the previous quarter [19] - Adjusted EBITDA was $35 million, representing 12% of revenue, and decreased by 29% compared to the prior quarter [19] - Free cash flow for the completions business was $25 million [19] Business Line Data and Key Metrics Changes - The completions business continues to generate sustainable free cash flow despite a decline in activity and related revenue [20] - Capital expenditures incurred were $98 million, with approximately $79 million supporting ProPWR orders [21] - The company anticipates full-year 2025 capital expenditures to be between $270 million and $290 million, down from previous guidance [22] Market Data and Key Metrics Changes - Approximately 70 full-time frac fleets are currently operating in the Permian, down from 90 to 100 fleets at the beginning of the year, indicating a slowdown in the completions market [4] - Pricing discipline has softened at the lower end of the market, particularly among subscale frac providers [7] Company Strategy and Development Direction - ProPetro is focusing on capital light investments and the ProPWR segment as key growth engines [6][10] - The company secured a long-term contract for 60 megawatts to support a hyperscale data center, marking its entry into the data center power market [11] - ProPetro plans to expand its capacity to 750 megawatts by the end of 2028, with a focus on both oilfield power projects and data center applications [12][15] Management's Comments on Operating Environment and Future Outlook - The management expects the challenging operating environment to persist into at least the first half of next year due to tariffs and OPEC production increases [5] - Despite current market challenges, ProPetro is well-positioned with a strong balance sheet and a focus on operational excellence [17] - The company anticipates maintaining 10 to 11 active fleets in the fourth quarter, with expectations for sequential improvement in the ProPWR segment [16] Other Important Information - ProPetro has executed a letter of intent for a $350 million leasing facility to support its ProPWR growth [13][25] - The company is committed to a disciplined approach to capital deployment, ensuring flexibility to pivot between key priorities [24] Q&A Session Summary Question: Details on the 60 megawatt data center contract - The contract involves reciprocating engines and battery energy storage systems, with potential for future capacity expansion [30][33] Question: Future funding structures and liquidity runway - The company prioritizes organic free cash flow for funding, with additional options available for future capital needs [35][38] Question: Contract duration preferences in the current environment - The company evaluates each deal on a case-by-case basis, balancing long-term contracts with potential for higher margins in shorter terms [44][46] Question: Equipment cost differentials between data centers and oilfield microgrids - There is no significant cost differential; the average cost of equipment is around $1.1 million per megawatt [47][48] Question: Deployment of megawatts across different markets - The company anticipates a balanced distribution between oilfield contracts and data center contracts, with potential shifts based on market opportunities [53][56] Question: Concerns about power being bid away from frac business - The company feels confident about its current positioning and the differentiation in equipment used for different applications [61][62] Question: Differentiation between frac and power generation services - Both service lines focus on customer needs, with a strong emphasis on operational excellence and flexibility [66][68]