Financial Data and Key Metrics Changes - ProPetro generated total revenue of $294 million, a decrease of 10% compared to the prior quarter [29] - Net loss totaled $2 million or $0.02 loss per diluted share, compared to a net loss of $7 million or $0.07 loss per diluted share for the second quarter of 2025 [29] - Adjusted EBITDA totaled $35 million, representing 12% of revenue, and decreased 29% compared to the prior quarter [29] - Free cash flow for the completions business was $25 million [29] 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 [30] - Capital expenditures incurred were $98 million, with approximately $79 million supporting ProPWR orders [30] - The company anticipates full-year 2025 capital expenditures incurred to be between $270 million and $290 million, down from the previous range [32] 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 depressed activity levels [14] - The company expects the challenging operating environment to persist into 2026 due to tariffs and OPEC production increases [15][26] Company Strategy and Development Direction - ProPetro is focusing on capital light investments and the development of its ProPWR segment, which is expected to drive future growth [15][20] - The company has secured contracts for seven frac fleets, with 75% of the fleet consisting of next-generation gas-burning equipment [20] - ProPetro aims to deepen existing relationships and expand its reach to new partners in the power generation market, targeting at least 220 megawatts contracted by the end of the year [23] Management's Comments on Operating Environment and Future Outlook - Management believes the current market conditions present valuable opportunities, and the company is well-positioned to navigate the market [19] - The company expects to maintain 10 to 11 active fleets in the fourth quarter, with a sequential improvement anticipated in the ProPWR segment [26][27] - Management remains confident in the strategy and future of ProPetro, emphasizing the importance of a strong balance sheet and disciplined capital allocation [38] Other Important Information - ProPetro has executed a letter of intent for a $350 million leasing facility to support growth in the ProPWR business [24][34] - The company plans to reach a total of 750 megawatts delivered by year-end 2028, with a focus on long-term take-or-pay contracts [24][33] Q&A Session Summary Question: Details on the 60 megawatts data center contract - The contract involves reciprocating engines and battery energy storage systems, with potential for future capacity expansion [49] Question: Future funding structures and liquidity runway - The company prioritizes organic free cash flow for funding, with the leasing facility providing flexible capital as needed [58][60] Question: Contract term preferences in the current environment - The company evaluates each deal on a case-by-case basis, considering both long-term and shorter-term contracts based on market conditions [75] Question: Equipment cost differential for data centers versus Permian microgrids - The average cost of equipment is about $1.1 million per megawatt, with similar economics across both sectors [78][95] Question: Deployment of megawatts across different markets - The current distribution of contracted megawatts is expected to remain similar in the near term, with potential shifts as more data center contracts are pursued [84]