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]