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- **Resilient Cash Flow**: Legacy completions business generated $25M free cash flow in Q3 despite 10% revenue decline.
- **PROPWR Growth**: Secured 220 MW of contracts by year-end, with 360 MW on order and $350M leasing facility to accelerate deployment.
- **Data Center Expansion**: Entered the hyperscale data center market with a 60 MW contract, leveraging next-gen power solutions.
- **Disciplined Capital Allocation**: $98M Q3 CapEx focused on PROPWR growth, with 2025 full-year guidance of $270-290M.
- **Market Leadership**: 70% of active horsepower under long-term contracts, with 75% of fleet as next-gen gas-burning equipment.

**【CEO Summary Section】**
- ProPetro achieved $294 million in Q3 revenue, down 10% QoQ due to lower completions activity, but maintained free cash flow of $25 million in the legacy completions business.
- 70% of active hydraulic horsepower is under long-term contracts, with 75% of the fleet consisting of next-gen gas-burning equipment.
- PROPWR secured 60 MW for a data center and 80 MW for an oilfield microgrid, with total contracted capacity expected to reach 220 MW by year-end.
- Ordered 140 MW of additional equipment, bringing total on-order capacity to 360 MW, with plans to reach 770 MW by 2028.
- Signed a $350 million leasing facility to support PROPWR growth, with equipment cost averaging $1.1 million/MW.

**【CFO Financial Commentary】**
- Q3 net loss was $2 million ($0.02 per share), narrower than the $7 million loss in Q2.
- Adjusted EBITDA was $35 million (12% of revenue), down 29% QoQ due to lower activity.
- Total capital expenditures were $98 million (including $79 million for PROPWR), with full-year CapEx guidance revised to $270-290 million.
- Liquidity remained strong at $158 million as of Q3, with $67 million in cash and $91 million available under the ABL.

**【Q&A Key Highlights】**
- **Data Center Contract**: 60 MW deployment with reciprocating engines and batteries, part of a long-term agreement with a hyperscaler.
- **Funding Strategy**: Prioritize organic free cash flow ($25M in Q3) and the $350M leasing facility for PROPWR growth, with minimal near-term cash outflows.
- **Equipment Costs**: Average $1.1M/MW including balance of plant, competitive with industry peers.
- **Market Positioning**: 70 full-time frac fleets in Permian vs. 90-100 at year start, with ProPetro idling 3 fleets to preserve equipment for better pricing.
- **2026 Outlook**: Expect 10-11 active fleets in Q4, with sequential improvement in PROPWR offsetting completions weakness.

ProPetro Holding Corp. (PUMP) Q3 2025 Earnings Call Transcript

- **Revenue decline reflects market challenges**: Q2 revenue down 9% QoQ to $326M, driven by lower activity and idling of subeconomic fleets.
- **Next-gen fleet resilience**: 75% of fleets are Tier IV DGB or FORCE electric, with 50%+ active horsepower under long-term contracts.
- **PROPWR milestone**: 10-year contract for 80MW power supply marks first commercial deployment, with 220MW total capacity on order.
- **Cautious outlook**: Q3 fleet count expected to drop to 10-11, with potential further decline in Q4 due to macro uncertainty.
- **Liquidity remains strong**: $178M total liquidity supports disciplined capital allocation to PROPWR growth.

**【Management Opening Remarks】**
- Matt Augustine introduced the leadership team, including new CFO Caleb Weatherl, who will not participate in Q&A due to recent tenure. 
- Reminder of forward-looking statements and non-GAAP financial measures.

**【CEO Summary Section】**
- Q2 revenue of $326M (-9% QoQ) reflects market challenges, but legacy completions business remains resilient with 50%+ active horsepower under long-term contracts.
- Permian frac fleet count reduced to ~70 from ~90-100 at start of year; ProPetro idled subeconomic fleets while maintaining 75% next-gen fleet utilization (Tier IV DGB & FORCE electric).
- PROPWR secured 10-year contract for 80MW power supply, with 220MW total capacity on order. Management expects all 220MW contracted by year-end.
- 2025 CapEx guidance updated to $270-310M (down from $295-345M), with $170M allocated to PROPWR.
- Q3 fleet guidance: 10-11 active fleets, with potential seasonal decline in Q4.

**【CFO Financial Commentary】**
- Net loss of $7M (-100% YoY) due to strategic fleet idling and lease expenses ($14M for electric fleets).
- Adjusted EBITDA of $50M (-32% QoQ) reflects lower activity, but Completions free cash flow remains stable at $26M.
- Total liquidity of $178M (including $103M ABL capacity) supports disciplined capital allocation.
- Share buyback program paused to prioritize PROPWR growth; 13M shares repurchased since May 2023 (~11% of outstanding shares).

**【Q&A Key Highlights】**
- **Market Supply Dynamics**: Subscale diesel fleets driving price discipline; ProPetro expects 20-30 idle fleets to persist into 2026. Management sees attrition as long-term tailwind for higher-margin next-gen equipment.
- **PROPWR Expansion**: 80MW contract deployment begins Q3 2025, with linear asset rollout through mid-2026. Exploring non-oil/gas opportunities but prioritizing midstream production demand.
- **4Q Outlook**: Seasonal decline expected, but simul-frac utilization on electric fleets remains stable. Management cautious on E&P capital allocation amid macro uncertainty.
- **International Equipment Demand**: ProPetro fielding inquiries for diesel equipment exports, but no material impact on domestic supply/demand expected.


ProPetro Holding Corp. (PUMP) Q2 2025 Earnings Call Transcript

- **Resilient Q1 Performance**: 12% revenue growth, $73M EBITDA, and $22M free cash flow despite oil price volatility
- **Next-Gen Fleet Dominance**: 75% of fleet now electric/dual-fuel, with 50% under long-term contracts
- **PROPWR Breakthrough**: 220MW of power generation equipment on order, 75MW secured under LOIs with 10-year contracts
- **Disciplined Capital Allocation**: Q2 fleet reduction to 13-14 (from 14-15) reflects focus on high-margin, contracted work
- **Shareholder Returns**: 13M shares retired since 2023, program extended for another year

**【CEO Opening Remarks】**
- Q1 2025 revenue increased 12% QoQ, driven by higher utilization across all segments and stabilization of pricing.
- 75% of fleet now consists of Tier IV DGB dual-fuel and electric equipment, with 50% of active hydraulic horsepower under long-term contracts.
- PROPWR orders total 220 MW (140 MW initially ordered, +80 MW recently added), with 75 MW secured under LOIs for long-term service contracts.
- Q2 2025 fleet count expected to decrease to 13-14 from 14-15 in Q1, reflecting cautious capital allocation in response to oil price volatility.

**【CFO Financial Highlights】**
- Total revenue: $359M (12% QoQ growth)
- Net income: $10M ($0.09 EPS) vs. $17M loss in Q4 2024
- Adjusted EBITDA: $73M (20% of revenue, +38% QoQ)
- Free cash flow: $22M
- Capital expenditures: $39M (down 9% YoY midpoint guidance)
- Share repurchases: 13M shares retired (11% of outstanding shares) since May 2023

**【Q&A Key Takeaways】**
1. **PROPWR Expansion**: 
   - Focus remains on Permian oil & gas operations, but exploring opportunities outside the basin
   - 10-year contracts with attractive cash-on-cash paybacks (~4-year return)
   - Equipment mix: 50% turbines, 50% reciprocating engines

2. **Frac Business Strategy**: 
   - 50% of fleet under long-term contracts, minimizing exposure to spot market volatility
   - Electric fleets generate 2x EBITDA of legacy diesel equipment
   - Q2 2025 fleet reduction driven by pricing discipline, not customer attrition

3. **Capital Allocation**: 
   - Top priority: PROPWR and electric fleet investments (>$170M in 2025)
   - Balanced approach with M&A, wireline/cementing growth, and share buybacks
   - 2025 CapEx guidance: $295-345M (down 9% YoY)


ProPetro Holding (PUMP)-29 Apr 25-2025 Q1 Earnings call transcript

- **Next-Gen Fleet Expansion**: 4 electric fleets operational, with a fifth deployed in 2025 under long-term contracts. 
- **PROPWR Breakthrough**: 140 MW of power equipment ordered, targeting $300-400K/MW annual EBITDA by 2026. 
- **Free Cash Flow Machine**: FY 2024 free cash flow up 9x to $118M, driven by reduced capex (-57%) and operational excellence. 
- **Capital Allocation Clarity**: 2025 capex split between completions ($150-200M) and PROPWR ($150-200M), with $104M financing secured. 
- **Market Resilience**: Flat frac activity in 2025, but differentiation through high-efficiency assets and long-term contracts positions ProPetro for share gains.

**【CEO Summary Section】**
- ProPetro achieved strong performance in Q4 2024, closing the year with a focus on next-generation services and disciplined capital allocation. 
- The FORCE electric fleet expanded to four active units under long-term contracts, with a fifth fleet expected in 2025. 
- The new PROPWR power generation business secured 140 MW of equipment orders, targeting oilfield and industrial applications. 
- Free cash flow generation remained robust, driven by a capital-light model and operational efficiency. 
- Capital allocation priorities include scaling PROPWR, transitioning to next-gen fleets, and returning capital to shareholders through share buybacks. 

**【CFO Financial Commentary】**
- FY 2024 revenue declined 11% YoY, but free cash flow improved 9x to $118 million due to reduced capital expenditures (-57%) and operational optimization. 
- Q4 2024 net loss was $17 million (including a $24M goodwill impairment), with adjusted EBITDA of $53 million. 
- Capital expenditures for 2025 are guided at $300-400M, with $150-200M allocated to completions and $150-200M to PROPWR. 
- Liquidity remains strong at $161M as of Q4, supporting strategic initiatives. 

**【Q&A Key Highlights】**
- **PROPWR Growth**: Expected 150-200 MW capacity by early 2026, targeting $300-400K/MW annual EBITDA with 3-4 year payback. 
- **Frac Market Outlook**: Flat activity in 2025, with 14-15 active fleets in Q1 and potential tightening due to attrition at lower-tier competitors. 
- **Cementing & Wireline**: Cementing is a bright spot, while Wireline faces weaker pricing but opportunities for integrated service growth. 
- **Operational Risks**: Mitigated by experienced leadership, existing infrastructure, and long-term contracts for power assets. 
- **Share Buybacks**: 13M shares retired since inception, representing 11% of outstanding shares.

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