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Core Insights - ProPetro Holding Corp.'s subsidiary PROPWR has secured a contract with Coterra Energy to deliver microgrids in New Mexico's Permian Basin, with operations starting in early 2026, highlighting PROPWR's execution strength and market responsiveness [1][8] - The partnership combines PROPWR's technical capabilities with Coterra Energy's operational strengths to create a scalable power platform tailored for oilfield needs [2] - PROPWR's contracted capacity has surpassed 220 megawatts (MW), with an average contract duration of about five years, indicating strong demand and long-term asset stability [3][8] Capacity and Equipment - PROPWR has placed orders for an additional 190 MW of equipment, increasing its total capacity to approximately 550 MW, with a mix of high-efficiency natural gas engines and low-emission turbines expected by the end of 2027 [4][8] - The long-term goal is to achieve a capacity of one gigawatt or more by 2030, reflecting the company's growth ambitions in the energy sector [4] Financial Outlook - PROPWR has raised its 2026 capital expenditure forecast to between $250 million and $275 million, while also pursuing a potential $350 million lease finance facility to enhance financial flexibility [5] - The company emphasizes free cash flow as its preferred funding source, positioning itself as a leading provider of innovative power solutions across various markets [5] Operational Progress - In its first year of operations, PROPWR has demonstrated strong momentum by securing multiple contracts, deploying assets, and establishing a competitive supply chain [6] - ProPetro's core businesses remain robust, with 11 active frac fleets and strong activity levels anticipated through 2026 [6]

Core Insights - ProPetro Holding Corp.'s PROPWR division has secured a contract with a subsidiary of Coterra Energy Inc. to develop and install distributed microgrids in New Mexico's Permian Basin, with operations set to begin in Q1 2026 [1][2] - The contract adds over 220 megawatts to PROPWR's portfolio, with an average contract duration of approximately five years, demonstrating the division's capability to support leading operators in the region [2] - PROPWR's commercial pipeline remains strong, with additional opportunities in the oilfield and data center sectors, reinforcing its position as a key provider of power solutions [3] Equipment and Capacity - PROPWR has ordered an additional 190 megawatts of equipment, increasing its total capacity to approximately 550 megawatts, with a split of 70% natural gas generators and 30% low emissions turbines [4] - The average cost per megawatt for the ordered equipment is approximately $1.1 million, including balance of plant, with expectations to deliver 750 megawatts by year-end 2028 and a goal of reaching one gigawatt by year-end 2030 [4] Financial Projections - Due to the new equipment orders, PROPWR's projected capital expenditures for 2026 are now between $250 million and $275 million, up from previous guidance of $200 million to $250 million [5] - The company is negotiating a $350 million lease finance facility with an investment-grade partner to enhance financial flexibility, while prioritizing free cash flow from its completions business as the main source of future capital [6] Business Momentum - PROPWR has made significant progress since its launch a year ago, including signing multiple contracts and establishing a competitive supply chain position [7] - The company is currently operating 11 frac fleets and anticipates maintaining this level of activity into 2026, indicating a strong operational outlook [7]

Financial Data and Key Metrics Changes - Adjusted EBITDA rose to $1,210 million, reflecting a 170 basis point year-over-year improvement in margins, driven by structural cost actions and stronger operational execution [6][35] - Free cash flow generated was $239 million, with a total of $423 million returned to shareholders, including $196 million in share repurchases [9][36] - GAAP diluted earnings per share were $0.71, while adjusted earnings per share were $0.63, up 11% year-over-year [35] Business Line Data and Key Metrics Changes - Oilfield Services and Equipment (OFSE) revenue was $3,600 million, up 3% sequentially, with EBITDA margins expanding by 90 basis points to 18.7% [40][42] - Industrial and Energy Technology (IET) revenue increased by 5% year-over-year to $3,300 million, with a 190 basis point margin expansion to 17.8% [39][40] - IET orders totaled $3,500 million in the quarter, with a year-to-date total of $6,700 million, indicating strong momentum [34][37] Market Data and Key Metrics Changes - The company booked $1 billion in new energy orders during the quarter, bringing year-to-date bookings to $1.25 billion, already matching the total for last year [21] - LNG demand is expected to grow by over 20% by 2040, with global LNG increasing by at least 75% [23] - The company secured $2.9 billion in gas infrastructure equipment orders over the past six quarters, indicating strong momentum in this area [23] Company Strategy and Development Direction - The company announced three strategic transactions to advance its portfolio optimization strategy, including a joint venture and acquisitions, aimed at enhancing earnings durability and cash flow [10][44] - Focus remains on executing a disciplined capital allocation approach to maximize long-term shareholder value, with a commitment to returning 60% to 80% of free cash flow to shareholders [36][44] - The company is expanding its presence in distributed power solutions, particularly for data centers, which is seen as a compelling growth factor [28][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving IET's full-year order guidance range of $12.5 billion to $14.5 billion, supported by strong demand in new energy and gas infrastructure [9][21] - The macro environment remains uncertain, but long-term fundamentals are strong, with global energy demand expected to grow due to population growth and industrialization [20][19] - Management anticipates continued volatility in oil markets but expects natural gas demand to grow significantly, creating a favorable environment for the company [25][23] Other Important Information - The company ended the quarter with cash of $3.1 billion and a net debt to EBITDA ratio of 0.6 times, indicating a strong balance sheet [36] - The company is focused on enhancing operational discipline and productivity through its business system, which is now in its third year [39][54] Q&A Session Summary Question: Can you unpack the drivers of the margin performance? - Management highlighted that OFSE's EBITDA margins expanded by 90 basis points due to stronger revenue and cost efficiency initiatives, while IET's margins increased by 190 basis points despite tariff-related headwinds [60][63] Question: Can you expand on the IET order performance this quarter? - Management noted that IET secured $3.5 billion in orders, driven by strength in non-LNG markets, gas infrastructure, and data centers, with expectations for strengthening LNG orders in the second half [67][70] Question: What is the net impact from the three transactions announced in June? - Management indicated that the transactions are expected to provide a modest benefit to segment margins, with a net EBITDA impact of just over $100 million anticipated for 2026 [78][79]

Business Overview - Solaris Energy Infrastructure has a market capitalization of approximately $1.5 billion and an enterprise value of approximately $2.0 billion[4] - The company anticipates its power solutions segment to contribute over 80% of its Adjusted EBITDA, while logistics solutions are expected to contribute less than 20%[6, 9] Growth and Expansion - Solaris expects to grow its fleet to 1.7 GW by the second half of 2027, with 71% of the pro forma fleet already contracted[10, 13] - The company has established a joint venture with a key data center customer for approximately 900 MW of power generation[18] - Additional orders for 330 MW will expand the fleet to approximately 1.7 GW by 2H 2027[13] Financial Performance and Projections - Solaris anticipates an annual Adjusted EBITDA contribution of $575-600 million pro forma for power fleet equipment deliveries[22] - The company projects a potential annual Adjusted EBITDA of $440-465 million from its 1.7 GW power solutions fleet[22] - Q1 2025 Adjusted EBITDA was $47 million, with Q2 2025 guidance between $50-55 million and Q3 2025 guidance between $55-60 million[93] Fleet Composition - The pro forma 1.7 GW fleet includes 55% of 16.5 MW units and 37% of units greater than 35 MW[52] - Approximately 67% of the 1.7 GW fleet is contracted to data centers, with 4% contracted to energy and 29% available beginning in 2H 2026[44]