Re: Propetro Holding Corp (PUMP)
Looks like 2024 EPS are $0.67 and 2025 $0.83
It's all about building growing predictable FCF; ProPetro Holding Corp (PUMP) DCF Valuation says PUMP 36% undervalued w/ fair value at $13/share.
perplexity.ai
Based on the information provided in the search results, here are the key points regarding management's expectations for earnings and free cash flow (FCF) from the new ExxonMobil (XOM) deal, ProPetro's value proposition going forward, and analyst expectations:Earnings and FCF Expectations from XOM Deal- ProPetro's management anticipates the ExxonMobil agreement to provide electric hydraulic fracturing services will increase their 2024 Adjusted EBITDA expectations by approximately $10 million.
- They expect to convert 80-90% of that incremental Adjusted EBITDA into free cash flow from the XOM deal.
- This highlights ProPetro's focus on maximizing free cash flow generation from strategic growth opportunities like the XOM contract.
ProPetro's Value Proposition- The XOM deal involves deploying ProPetro's FORCE^SM electric hydraulic fracturing fleets, which offer premium value through increased operational efficiency, lower emissions, and reduced completion costs for customers.
- ProPetro is strategically transitioning to next-generation equipment like the electric fleets, providing differentiated service quality to customers.
- Their CEO highlighted flexibility and a customer-focused approach in contract negotiations as a key value proposition.
- The acquisition of Par Five expands ProPetro's cementing services capabilities in the Permian Basin, complementing their hydraulic fracturing and wireline businesses.
Analyst Expectations- In Q1 2024, ProPetro's revenue of $406 million surpassed analyst estimates of $392.12 million.
- Their earnings per share of $0.18 significantly exceeded the estimated $0.05, driven by higher activity levels and pricing stability.
- Analysts likely have positive expectations given ProPetro's strong Q1 results, strategic initiatives like the XOM deal, free cash flow focus, and shareholder returns through buybacks.
So in summary, management expects the XOM electric fracturing deal to boost 2024 EBITDA and free cash flow, reinforcing ProPetro's value proposition of next-gen technology, operational excellence and financial discipline. Analysts seem optimistic about ProPetro capitalizing on strategic opportunities while delivering robust profitability.
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Going to try to scale in a position at/near $8/share. Looks like a good complement to my other large oilers. May have to look at OXY and/or XOM. My No 1 position is CVX.
If you click on the AI Perplexity link above, you can follow my line of questions. Feel free to add more input/questions to this "Perplexity AI thread" as I find many times I can discover other unique relationships a company might have w/ JV's, Partners and/or unique innovative technologies.
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