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1. Company Snapshot

1.a. Company Description

ProPetro Holding Corp., an oilfield services company, provides hydraulic fracturing and other related services.The company operates through Pressure Pumping and All Other segments.It offers cementing, acidizing, and coiled tubing services.


The company serves oil and gas companies engaged in the exploration and production of North American oil and natural gas resources.As of December 31, 2021, its fleet comprised 12 hydraulic fracturing units with 1,423,000 hydraulic horsepower.ProPetro Holding Corp.


was founded in 2007 and is headquartered in Midland, Texas.

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1.b. Last Insights on PUMP

Negative drivers behind ProPetro Holding Corp.'s recent performance include a Q4 loss of $0.01 per share, in line with the Zacks Consensus Estimate, and a year-over-year decline in earnings. The company's Q4 2024 earnings call highlighted increasing expenses, which were partially offset by revenue growth. Additionally, ProPetro's Q1 2025 capital expenditures are expected to be between $300 million and $400 million, indicating ongoing investment in the business.

1.c. Company Highlights

2. ProPetro Holdings Corp. Delivers Strong Results Amidst Challenging Market Conditions

Publication Date: Mar -09

📋 Highlights
  • Free Cash Flow Strength: Completions business generated $98M free cash flow in Q4 2025, driven by strong EBITDA and reduced CapEx.
  • PROPWR Growth Targets: Aims to reach 750 MW by 2028 and 1 GW+ by 2030, with 240 MW already committed in 2026 (avg. 5-year term).
  • Capital Allocation: 2026 CapEx guided at $390M–$435M, including $250M–$275M for PROPWR (equipment cost: $1.1M/MW).
  • Liquidity Position: Total liquidity of $325M as of Jan 31, 2026, including $163M from recent equity offering and $89M ABL facility.
  • Market Positioning: 11 active frac fleets in Q1 2026, leveraging low debt, top-tier customers, and next-gen fleet to outperform competitors.

Financial Performance

The company's revenue remained resilient, and decisive cost structure actions helped support margin performance. The actual EPS came out at $0.01, beating estimates of -$0.13. Analysts estimate next year's revenue growth at 16.4%, indicating a positive outlook for the company.

Operational Highlights

ProPetro's legacy completions business continues to generate sustainable free cash flow, and the company is making strategic investments in fleet automation technology and direct drive gas frac units. The PROPWR business is gaining momentum, with a growing pipeline of opportunities and a strong position in the market. As Sam Sledge mentioned, the company is transitioning its existing customers to Tier IV IV DGB DGB assets, and they are seeing a positive response.

Growth Prospects

The company is reaffirming its 5-year growth outlook for PROPWR, expecting to deliver at least 750 megawatts by year-end 2028 and 1 gigawatt or more by year-end 2030. With a strong balance sheet and a recent equity offering, ProPetro is well-positioned to fund its strategic growth initiatives. The company's commercial pipeline has gained momentum, with customers increasingly realizing the cost savings of replacing inefficient power setups with efficient infield distributed microgrids.

Valuation

ProPetro's valuation metrics indicate a relatively high price-to-earnings ratio, with a P/E ratio of 1567.26, suggesting that the stock may be overvalued. However, the company's growth prospects and prospects for increasing demand for power in the Permian Basin may justify the premium. The EV/EBITDA ratio of 8.74 and P/S ratio of 1.19 provide a more nuanced view of the company's valuation.

Outlook

ProPetro is well-positioned to capitalize on the growing demand for power in the Permian Basin, and its PROPWR business is expected to drive growth in the coming years. With a strong balance sheet and a disciplined approach to deploying capital, the company is poised to deliver long-term value for its stakeholders. As Travis Simmering mentioned, the competition in the data center market is improving the terms and conditions for incremental investment in megawatts into the oilfield microgrids, which is a positive development for ProPetro.

3. NewsRoom

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ProPetro awarded ‘Buy' rating in initial coverage from Bank of America

Mar -30

Source: proactiveinvestors.com

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ProPetro awarded ‘Buy’ rating in initial coverage from Bank of America

Mar -30

Source: proactiveinvestors.com

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ProPetro Holding Corp. (NYSE:PUMP) Receives Consensus Recommendation of “Hold” from Analysts

Mar -22

Source: defenseworld.net

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Financial Contrast: ProPetro (NYSE:PUMP) versus Kinetik (NYSE:KNTK)

Mar -20

Source: defenseworld.net

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ProPetro (PUMP) Soars 9.9%: Is Further Upside Left in the Stock?

Mar -13

Source: zacks.com

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ProPetro Q4 Earnings & Revenues Top Estimates, Sales Decline Y/Y

Feb -23

Source: zacks.com

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Eldridge Closes $350 Million Lease Facility with ProPetro

Feb -23

Source: businesswire.com

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ProPetro (NYSE:PUMP) Sets New 52-Week High on Earnings Beat

Feb -19

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.12%)

6. Segments

Hydraulic Fracturing

Expected Growth: 1.2%

ProPetro Holding Corp.'s 1.2 growth in Hydraulic Fracturing is driven by increasing demand for oil and gas, improved operational efficiency, and strategic expansion into new basins. Additionally, advancements in fracking technology, rising well completion activities, and growing E&P operator investments in the Permian Basin also contribute to this growth.

Wireline

Expected Growth: 0.8%

ProPetro Holding Corp.'s Wireline segment growth of 0.8 is driven by increasing demand for oil and gas production, expansion of existing contracts, and strategic acquisitions. Additionally, the company's focus on operational efficiency, cost reduction, and technology advancements have contributed to the growth. Furthermore, the rising need for well intervention services and the company's strong relationships with major oil and gas operators have also supported the segment's growth.

All Other

Expected Growth: 0.9%

ProPetro Holding Corp.'s All Other segment growth of 0.9 is driven by increasing demand for its oilfield services, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on cost reduction and operational efficiency has led to improved profitability, contributing to the segment's growth.

7. Detailed Products

Pressure Pumping

ProPetro's pressure pumping services provide hydraulic fracturing and cementing solutions to enhance oil and gas well production.

Coiled Tubing

ProPetro's coiled tubing services offer a range of solutions for well intervention, including fishing, milling, and cleanout operations.

Cementing

ProPetro's cementing services provide customized cementing solutions for oil and gas wells, ensuring wellbore integrity and zonal isolation.

Acidizing

ProPetro's acidizing services involve the injection of acid into oil and gas wells to stimulate production and enhance well performance.

Frac and Flowback

ProPetro's frac and flowback services provide comprehensive solutions for hydraulic fracturing and flowback operations.

8. ProPetro Holding Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for ProPetro Holding Corp. is medium due to the availability of alternative services and products in the oilfield services industry.

Bargaining Power Of Customers

The bargaining power of customers for ProPetro Holding Corp. is low due to the company's strong relationships with its customers and the lack of buyer concentration in the industry.

Bargaining Power Of Suppliers

The bargaining power of suppliers for ProPetro Holding Corp. is medium due to the presence of several suppliers in the industry, but the company's large scale of operations gives it some bargaining power.

Threat Of New Entrants

The threat of new entrants for ProPetro Holding Corp. is low due to the high barriers to entry in the oilfield services industry, including the need for significant capital investment and technical expertise.

Intensity Of Rivalry

The intensity of rivalry for ProPetro Holding Corp. is high due to the competitive nature of the oilfield services industry, with several established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 7.34%
Debt Cost 4.82%
Equity Weight 92.66%
Equity Cost 14.40%
WACC 13.69%
Leverage 7.92%

11. Quality Control: ProPetro Holding Corp. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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RPC

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Quality: 5.1

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Value: 2.6

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Quality: 6.9

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A-Score: 4.6/10

Value: 7.1

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Quality: 2.9

Yield: 0.0

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Volatility: 6.3

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ProPetro Holding

A-Score: 4.1/10

Value: 7.3

Growth: 3.8

Quality: 4.0

Yield: 0.0

Momentum: 8.0

Volatility: 1.3

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A-Score: 3.7/10

Value: 7.6

Growth: 4.8

Quality: 4.4

Yield: 0.0

Momentum: 1.5

Volatility: 4.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

13.67$

Current Price

13.67$

Potential

-0.00%

Expected Cash-Flows