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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's Resilient Financials and Strategic Growth

ProPetro generated total revenue of $294 million in the third quarter, a decrease of 10% compared to the prior quarter. The net loss totaled $2 million or $0.02 loss per diluted share, improving from a net loss of $7 million or $0.07 loss per diluted share in the second quarter of 2025. Adjusted EBITDA totaled $35 million, which was 12% of revenue and decreased 29% compared to the prior quarter. The actual EPS of -$0.02 beat estimates of -$0.11, indicating better-than-expected performance.

Publication Date: Nov -12

📋 Highlights
  • Frac Fleet Expansion:: Secured 1 additional frac fleet, totaling 7 contracted fleets (2 large simul-frac), with 75% of the fleet now next-gen gas burning equipment.
  • Data Center Market Entry:: Committed 60 MW for a Midwest hyperscaler data center, adding to a prior 80 MW contract, aiming for 220 MW contracted by year-end.
  • Financial Resilience:: Q3 revenue of $294M (-10% QoQ), net loss narrowed to $2M (-$5M improvement), and adjusted EBITDA of $35M (12% of revenue).
  • Capital Deployment:: Ordered 140 MW of equipment, totaling 360 MW on order/delivered, supported by a $350M investment-grade leasing facility.
  • 2030 Growth Target:: Aiming for 1 GW+ installed capacity by 2030, leveraging $25M in Q3 free cash flow and long-term take-or-pay contracts.

Operational Highlights and Contract Wins

The company secured an additional contract for 1 frac fleet, bringing the total to 7 contracted fleets, including 2 large simul-frac fleets. Approximately 75% of the fleet now consists of next-generation gas-burning equipment, and about 70% of active hydraulic horsepower is committed under long-term contracts. The company also won a long-term contract to commit 60 megawatts to support a hyperscaler data center in the Midwest region, marking its entry into the data center power market.

Data Center Opportunity and Growth Prospects

ProPetro now has over 150 megawatts contracted, with expectations to reach at least 220 megawatts by the end of the year. The company has placed orders for an additional 140 megawatts of equipment, bringing the total delivered or on order capacity to 360 megawatts. According to Sam Sledge, "we see clear potential not just to grow but to multiply our installed capacity with expectations of 1 gigawatt or greater by 2030."

Valuation and Financial Metrics

Analysts estimate next year's revenue growth at 0.9%. The company's current valuation metrics include a P/E Ratio of -7.36, P/B Ratio of 1.36, and P/S Ratio of 0.82. The EV/EBITDA ratio stands at 143.22, indicating a relatively high valuation. The company's focus on cost controls and disciplined approach to capital expenditures has helped sustain free cash flow. As Caleb Weatherl mentioned, "we'll prioritize using our own organic free cash flow in our business."

Strategic Focus and M&A

The company is prioritizing high-quality, cost-effective services and is open to M&A opportunities that enhance its competitiveness. Sam Sledge stated that "M&A is part of our strategy, but we prioritize making the 'next right decision' based on the competitive landscape and opportunity set." The company's strategic focus on growth in the data center market and oilfield power projects is expected to drive future performance.

3. NewsRoom

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ProPetro's $294 Million Quarter and Expanding Power Business: Is This Buy Signal Enough?

Dec -03

Source: fool.com

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ProPetro - Standing Out From Frac Peers With Power

Nov -21

Source: seekingalpha.com

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

Nov -17

Source: defenseworld.net

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ProPetro (PUMP) Reports Q3 Earnings: What Key Metrics Have to Say

Nov -07

Source: zacks.com

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Traders Buy Large Volume of Call Options on ProPetro (NYSE:PUMP)

Oct -31

Source: defenseworld.net

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ProPetro Holding's Q3 Loss Narrower Than Expected, Sales Beat

Oct -30

Source: zacks.com

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

Oct -29

Source: seekingalpha.com

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ProPetro (PUMP) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates

Oct -29

Source: zacks.com

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

Stock-Card
Profire Energy

A-Score: 5.6/10

Value: 5.2

Growth: 7.1

Quality: 8.0

Yield: 0.0

Momentum: 9.5

Volatility: 4.0

1-Year Total Return ->

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Ranger Energy Services

A-Score: 5.6/10

Value: 7.8

Growth: 6.3

Quality: 5.5

Yield: 2.0

Momentum: 7.5

Volatility: 4.3

1-Year Total Return ->

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MRC Global

A-Score: 4.5/10

Value: 6.8

Growth: 5.2

Quality: 2.9

Yield: 0.0

Momentum: 6.5

Volatility: 5.7

1-Year Total Return ->

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RPC

A-Score: 4.5/10

Value: 7.0

Growth: 5.8

Quality: 5.1

Yield: 4.0

Momentum: 1.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Helix Energy Solutions

A-Score: 3.6/10

Value: 6.9

Growth: 4.9

Quality: 4.5

Yield: 0.0

Momentum: 1.5

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
ProPetro Holding

A-Score: 2.3/10

Value: 5.4

Growth: 3.8

Quality: 2.1

Yield: 0.0

Momentum: 1.0

Volatility: 1.3

1-Year Total Return ->

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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

10.91$

Current Price

10.91$

Potential

-0.00%

Expected Cash-Flows