ProPetro (US:PUMP)2023-05-04 05:57Financial Performance - ProPetro achieved a revenue of $424 million in 1Q23, a 21% increase compared to $349 million in 4Q22 [83] - Net income for 1Q23 was $29 million, a 120% increase from $13 million in 4Q22 [83] - Adjusted EBITDA for 1Q23 reached $119 million, a 42% sequential growth from $84 million in 4Q22 [83] - The company's free cash flow was $(40,690) thousand in the three months ended March 31, 2023, compared to $15,690 thousand in the three months ended December 31, 2022 [24] Strategic Initiatives - ProPetro is transitioning to a younger, more efficient, and capital-light fleet powered by natural gas and electricity [60] - The company is investing in Tier IV DGB dual-fuel and electric equipment to lower diesel consumption [81] - Approximately 45% of ProPetro's frac fleet has been transitioned to Tier IV DGB dual-fuel since the start of 2022, displacing up to ~70% of diesel with natural gas [88] - The company expects to end 2023 with at least 7 Tier IV DGB and 4 electric frac fleets [77] Market Position - ProPetro is strategically located in the Permian Basin, with approximately 98% of its revenue coming from this region [58] - Upstream E&P spending continues to lag demand and is 45% below average spend from 2012–14 as producers have retreated [56] - The Permian Basin holds approximately 60 billion barrels of oil equivalent and spans ~86,000 square miles [59, 71, 73]