Financial Data and Key Metrics Changes - In Q4 2025, ProPetro generated total revenue of $290 million, a decrease of 1% compared to Q3 2025. Net income was $1 million, or $0.01 per diluted share, compared to a net loss of $2 million, or $0.02 loss per diluted share in Q3 2025 [17] - Adjusted EBITDA totaled $51 million, representing 18% of revenue, and increased by 45% compared to Q3 2025 [18] - Free cash flow for the completions business was $98 million, supported by strong EBITDA performance and reduced completion CapEx [18] Business Line Data and Key Metrics Changes - The legacy completions business continued to generate sustainable free cash flow, demonstrating resilience in a challenging market environment [5][19] - Capital expenditures incurred during Q4 2025 were $71 million, with $59 million supporting ProPower orders [19] Market Data and Key Metrics Changes - The Permian Basin is currently operating with approximately 70 full-time frac fleets, down from 90-100 fleets a year ago, indicating a significant slowdown in completions activity [4][14] - The company expects market challenges to persist into 2026, but anticipates that attrition among smaller competitors will provide structural benefits for well-capitalized operators like ProPetro [6] Company Strategy and Development Direction - ProPetro plans to allocate capital to its FORCE electric fleet, which has strong demand and commercial leverage, while also refurbishing a portion of its existing Tier 4 DGB fleet and investing in fleet automation technology [7][22] - The company aims to deliver at least 750 MW by year-end 2028 and 1 GW or more by year-end 2030 for its ProPower business, capitalizing on robust customer demand [10][11] Management's Comments on Operating Environment and Future Outlook - Management highlighted the uncertainty in the broader energy markets and the cautious operator mindset due to tariff impacts and OPEC+ production increases affecting commodity prices [4] - The company remains disciplined in capital deployment, investing only when there is clear visibility to high returns and strong customer endorsement [8][25] Other Important Information - ProPetro's recent equity offering provided approximately $163 million in cash, strengthening the company's balance sheet and reducing reliance on debt [11][12] - Total liquidity at the end of Q4 2025 was $205 million, which increased to $325 million by January 31, 2026, primarily due to the equity offering [24] Q&A Session Summary Question: Can you expand on the contracting cadence for ProPower in 2026? - Management indicated a portfolio approach and expects to evolve the mix towards non-oil and gas projects over time, with confidence in securing additional data center contracts [32][34] Question: Does the industry have enough frac equipment to return to previous levels? - Management expressed skepticism about the ability to return to 90-100 fleets, citing attrition among smaller players and the potential for structural tightening in the market [35][36] Question: How will the mix between finance CapEx and cash CapEx change in 2026? - Management stated that they have various options for funding CapEx, prioritizing cash on the balance sheet and organic cash generation [41] Question: What is the strategy for upgrading the Tier 4 DGB fleet? - Management discussed gradual additions of direct drive units and maintaining a mix of electric and diesel offerings to meet customer needs [43][46] Question: How is the demand for power evolving in the oil patch versus data centers? - Management noted that both sectors are growing, with data center demand being particularly high, and emphasized the importance of diversifying into both markets [52][54] Question: Are there concerns about the cost of power for e-fracs? - Management indicated that the e-frac market has stabilized, and they do not foresee significant concerns regarding power costs at this time [52] Question: How is the demand for on-site generation for data centers affecting returns on investment? - Management acknowledged that increased demand for data centers is positively impacting competition and terms in the oilfield market [81]