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ProPetro Holding Corp. (NYSE:PUMP), an oilfield services company with a market capitalization of $543 million and annual revenue of $1.4 billion, has entered into a significant financial agreement to enhance its equipment capabilities. On April 2, 2025, ProPetro's subsidiary, ProPetro Energy Solutions, LLC, finalized a Master Loan and Security Agreement with Caterpillar (NYSE:CAT) Financial Services Corporation, securing up to $103.7 million in loans for purchasing turbine generator sets and auxiliary equipment.
The arrangement consists of two phases for each Equipment Loan: a progress payment phase with an interim advance, and a term loan phase post-completion of milestones, transitioning into a fixed-rate promissory note. The loans are secured by the acquired equipment and related proceeds, with ProPetro and its subsidiary ProPetro Services, Inc. acting as guarantors.
This strategic move is subject to customary covenants, including restrictions on further encumbrance of the collateral. The agreement is detailed in Exhibit 10.1 of the Form 8-K filed with the SEC. This financial move is expected to bolster ProPetro's operational capacity in the oil and gas field services sector. While the company reported losses in the last twelve months, InvestingPro analysts forecast a return to profitability this year, with projected earnings per share of $0.31. The information reported is based on a press release statement and InvestingPro data, where subscribers can access 8 additional key insights about PUMP's financial health and market position.
In other recent news, ProPetro Holding Corp reported its fourth-quarter 2024 financial results, which fell short of analysts' expectations. The company posted a net loss with an earnings per share (EPS) of -$0.17, missing the projected $0.01, and revenue came in at $320.6 million, below the forecasted $327.72 million. Despite these financial misses, ProPetro significantly increased its free cash flow, which rose over nine times to $118 million, enhancing its liquidity position. In management changes, ProPetro announced the resignation of Chief Financial Officer David Schorlemer, with Celina A. Davila stepping in as the interim CFO. The company is actively searching for a permanent replacement. ProPetro is also focusing on its Pro Power business, investing in next-generation technology, and anticipates flat market activity for 2025. Additionally, the company recently divested its Vernal, Utah cementing operations to concentrate on its Permian-focused strategy. These developments come as ProPetro continues to navigate the challenges in the oil and gas industry.
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