| | | Pro Petro announces excellent earnings.
Slight reduction in Capex for the year.
Expansion of power units to 80 more Megawatts this year and next. Long range agreements for low carbon, high efficiency, dual fuel electricity generation with two majors (I guess XOM and CVX).
Trading up in early premarket.
Pump had price dip to below 5 where last dips went to below $7.50's.
Pump continues to lead in innovative, high efficienct ways to be profitable at lower crude prices.
Low cost will be the differentiator to profitability and the ability to continue higher crude volume production.
ProPetro Reports Financial Results for the First Quarter of 2025
April 29, 2025 7:00 am EDT Download as PDF
Related Documents
Earnings Webcast
Audio Transcript
Presentation
PDF
MIDLAND, Texas--(BUSINESS WIRE)-- ProPetro Holding Corp. ("ProPetro" or "the Company") (NYSE: PUMP) today announced financial and operational results for the first quarter of 2025.
First Quarter 2025 Results and Highlights
- Total revenue of $359 million increased 12% compared to $321 million for the prior quarter.
- Net income was $10 million ($0.09 income per diluted share) as compared to a net loss of $17 million in the prior quarter ($0.17 loss per diluted share).
- Adjusted EBITDA(1) of $73 million was 20% of revenue and increased 38% compared to the prior quarter.
- Recorded incurred capital expenditures of $39 million.
- Net cash provided by operating activities and Free Cash Flow(2) were $55 million and $22 million, respectively.
- Increased total ordered capacity of PROPWR? power generation equipment from approximately 140 megawatts to approximately 220 megawatts.
- Secured letters of intent on approximately 75 megawatts of long-term PROPWR service capacity with two separate operators in the Permian Basin, with final contract execution expected soon.
- Approximately 50% of ProPetro's active hydraulic horsepower is now under long-term contracts. This is inclusive of two Tier IV DGB dual-fuel and four FORCE® electric-powered hydraulic fracturing fleets.
(1)
| | Adjusted EBITDA is a non-GAAP financial measures and is described and reconciled to net income (loss) in the table under “Non-GAAP Financial Measures.”
| (2)
| | Free Cash Flow is a non-GAAP financial measure and is described and reconciled to net cash from operating activities in the table under “Non-GAAP Financial Measures."
|
Management Comments
Sam Sledge, Chief Executive Officer, commented, “Thanks to the hard work and dedication of the ProPetro team, we delivered another strong quarter. Against a backdrop of macroeconomic uncertainty and volatility, our team maintained its focus on operational excellence and financial discipline, once again demonstrating the resilience of our strategy and the strength of our execution. Our bifurcated service model and investments in next-generation technologies continue to differentiate ProPetro in the market. With disciplined capital allocation driving durable cash flow, we are demonstrating that ProPetro can thrive in various market cycles and deliver outstanding results to support long-term value creation.”
First Quarter 2025 Financial Summary
Revenue was $359 million, compared to $321 million for the fourth quarter of 2024. The 12% increase in revenue was largely attributable to strong utilization and resilient pricing across all service lines.
Cost of services, excluding depreciation and amortization of approximately $46 million relating to cost of services, were $264 million during the first quarter of 2025.
General and administrative ("G&A") expense of $28 million decreased from $29 million in the fourth quarter of 2024. G&A expense excluding nonrecurring and noncash items (stock-based compensation, retention bonuses and severance expenses) of $5 million, was $23 million, or 6% of revenue, a decrease of 6% as compared to the prior quarter.
Net income totaled $10 million, or $0.09 per diluted share, compared to a net loss of $17 million, or $0.17 per diluted share, for the fourth quarter of 2024. Net income for the first quarter of 2025 included a net loss on disposal of assets of $10 million primarily related to the sale of certain Tier II hydraulic fracturing equipment. Net loss for the fourth quarter of 2024 included goodwill impairment expense of $24 million, associated income tax benefit of $7 million and a net gain on disposal of assets and business of $5 million primarily related to the sale of the Vernal, Utah cementing operations.
Adjusted EBITDA increased to $73 million from $53 million in the fourth quarter of 2024 primarily related to increased revenues and prudent cost management.
Net cash provided by operating activities was $55 million as compared to $38 million in the prior quarter.
Share Repurchase Program
On April 24, 2024, the Company announced a $100 million increase to its share repurchase program, increasing it to a total of $200 million while extending the plan to May 2025. Since the program's inception, the Company has repurchased 13.0 million shares, representing approximately 11% of outstanding common stock. In the first quarter of 2025, the Company did not repurchase any shares, as it prioritized the launch and scaling of the PROPWR business. Subject to approval by the Board of Directors, the Company intends to extend the share repurchase program before it expires next month.
PROPWR Update
Mr. Sledge added, "Earlier this year, we reported a total of approximately 140 megawatts of mobile natural gas-fueled power generation equipment on order. Since then, we have placed additional orders for approximately 80 megawatts of natural gas reciprocating generators, which are expected to be funded from our cash flow. With this addition, our equipment type is split evenly between turbines and natural gas reciprocating generators. We anticipate full delivery of all ordered PROPWR equipment – approximately 220 megawatts – by mid-year 2026.
We are encouraged by the sustained robust demand for these assets and have secured letters of intent for approximately 75 megawatts of long-term PROPWR service capacity with two separate operators in the Permian Basin to support their in-field power needs, with final contract execution expected soon.
These early results are promising, and we believe they represent just the beginning for PROPWR. We have made significant progress in securing additional customer commitments and are actively negotiating long-term contracts beyond today's announcements. We believe the demand for reliable, low-emission power solutions is vast and growing, and we are strategically positioning PROPWR to capitalize on this high-growth market."
Liquidity and Capital Spending
As of March 31, 2025, total cash was $63 million and borrowings under the ABL Credit Facility were $45 million. Total liquidity at the end of the first quarter of 2025 was $197 million including cash and $134 million of available capacity under the ABL Credit Facility.
Capital expenditures incurred during the first quarter of 2025 were $39 million, which primarily related to maintenance and a down payment for the initial PROPWR turbine orders. Net cash used in investing activities as shown on the statement of cash flows during the first quarter of 2025 was $33 million.
Guidance
The Company now anticipates full-year 2025 capital expenditures to be between $295 million and $345 million, down 9% at the midpoint from prior guidance. Of this, the completions business is expected to account for $125 million to $175 million, a reduction from the original guidance thanks to additional successful cost optimization efforts. Additionally, the Company plans to allocate $170 million in 2025 and $60 million in 2026 to support current PROPWR equipment orders. As a reminder, $104 million of the PROPWR capital expenditures is financed.
During the first quarter, 14 to 15 hydraulic fracturing fleets were active. Due to the recent decline in oil prices, influenced by tariffs and OPEC+ production increases, along with a disciplined asset deployment strategy, the Company anticipates operating approximately 13 to 14 active hydraulic fracturing fleets in the second quarter of 2025.
Outlook
Mr. Sledge concluded, “As we look ahead to the remainder of 2025, our priorities are unchanged – we will continue to industrialize our operations, accelerate high-return investments, and remain disciplined stewards of capital. While longer-term visibility remains limited, we believe our strategic positioning, anchored by a strong balance sheet, disciplined capital expenditures, and differentiated offerings, positions us well for the road ahead. We are focused on controlling what we can, executing our strategy and building a more resilient, valuable ProPetro.”
Conference Call Information
The Company will host a conference call at 8:00 AM Central Time on Tuesday, April 29, 2025, to discuss financial and operating results for the first quarter of 2025. The call will also be webcast on ProPetro’s website at www.propetroservices.com. To access the conference call, U.S. callers may dial toll free 1-844-340-9046 and international callers may dial 1-412-858-5205. Please call ten minutes ahead of the scheduled start time to ensure a proper connection. A replay of the conference call will be available for one week following the call and can be accessed toll free by dialing 1-877-344-7529 for U.S. callers, 1-855-669-9658 for Canadian callers, as well as 1-412-317-0088 for international callers. The access code for the replay is 1778575. The Company has also posted the scripted remarks on its website.
About ProPetro
Bob |
|
