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MIDLAND, Texas - ProPetro Holding Corp. (NYSE:PUMP), currently trading at $5.68 with a market capitalization of $590 million, announced today that its PROPWR division has secured a 10-year contract to provide 80 megawatts of power generation capacity. According to InvestingPro data, the company’s stock is currently trading near its Fair Value, despite experiencing a significant 39% decline year-to-date. This marks PROPWR’s first customer commitment since the business was launched and signifies a step towards the company’s goal of redefining power distribution within the oil and gas sector.
Under the agreement with a Permian Basin exploration and production operator, PROPWR will begin deploying assets in the third quarter of this year, with the initiative continuing through 2026. The service will include the establishment of a distributed microgrid that utilizes in-field gas, reciprocating engines, and gas turbine generation to deliver power in areas lacking utility services.
The comprehensive contract includes asset provision, onsite operations, maintenance, monitoring, and an availability guarantee. Additionally, it features take-or-pay obligations that support PROPWR’s capacity commitment. This contract is seen as a foundational move for PROPWR, potentially leading to further expansion with options for the customer to increase the committed capacity.
Sam Sledge, CEO of ProPetro, expressed optimism about the agreement’s significance for PROPWR’s growth and its implications for the future of distributed power. He emphasized the contract’s contribution to ProPetro’s stability and earnings potential, reinforcing the company’s position in the oilfield services sector. While InvestingPro data shows the company wasn’t profitable over the last twelve months, analysts predict a return to profitability this year, with an EPS forecast of $0.24 for fiscal year 2025.
ProPetro is actively engaged in negotiations for additional contracts and has a letter of intent with another customer, with more announcements expected soon.
ProPetro Holding Corp., based in Midland, Texas, provides completion and power services to oil and gas companies focused on North American unconventional oil and natural gas resources. The company maintains a healthy financial position with a current ratio of 1.44 and operates with moderate debt levels, as revealed by InvestingPro analysis. PROPWR, also headquartered in Midland, offers reliable power services to the oil and gas industry in the Permian Basin, aiming to innovate in power generation. For deeper insights into ProPetro’s financial health and growth potential, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, which covers over 1,400 US equities with expert analysis and actionable intelligence.
This announcement is based on a press release statement and contains forward-looking statements subject to risks and uncertainties, including market demand and the successful execution of the company’s growth strategies. The company generated $1.4 billion in revenue over the last twelve months, with an EBITDA of $248 million, demonstrating its significant operational scale despite current challenges.
In other recent news, ProPetro Holding Corp reported impressive first-quarter 2025 earnings results, surpassing market expectations. The company posted an earnings per share (EPS) of $0.09, exceeding the forecasted $0.06, and achieved revenue of $359 million, which was above the anticipated $344.72 million. This strong financial performance reflects ProPetro’s effective cost management and strategic initiatives, particularly in fleet optimization and efficiency. In terms of financial highlights, ProPetro’s adjusted EBITDA increased by 38% to $73 million, representing 20% of the company’s revenue. The company also generated $55 million in net cash from operations and $22 million in free cash flow during the quarter.
Additionally, ProPetro has provided guidance for full-year 2025 capital expenditures, projecting a range between $295 million and $345 million, which is a 9% reduction from previous estimates. The company remains focused on the transition to electric fleets and the expansion of its Pro Power business. Future earnings projections from analysts indicate continued growth, with EPS expected to reach $0.33 in FY2025 and $0.5 in FY2026.
Furthermore, ProPetro’s recent strategic initiatives, including the Pro Power and Force Electric fleet, are progressing well. Despite challenges from market pressures and a reduced fleet count, the company is optimistic about its long-term prospects. CEO Sam Sledge emphasized the company’s resilience and strategic importance of electric fracturing, stating that "electric frac is the future."
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