ProPetro Holding Corp.

What they do

ProPetro provides completion services to upstream E&P companies, chiefly hydraulic fracturing, wireline and cementing, with operations concentrated in the Permian Basin. Hydraulic fracturing accounted for approximately 67.0% of total revenue for all segments as of June 30, 2026, and the company had 1,257,000 total available hydraulic horsepower, split between Tier IV DGB dual-fuel, FORCE electric-powered and conventional Tier II equipment. Through PROPWR, formed in December 2024, it also provides turnkey mobile natural gas-fueled power generation to oil and gas producers, industrial projects and data centers; PROPWR began generating revenue in the third quarter of 2025.

Revenue drivers

• Hydraulic fracturing — The largest segment, accounting for approximately 67.0% of total revenue for all segments as of June 30, 2026; revenue comes from fracturing services using a fleet of 1,257,000 available HHP.
• Wireline and cementing — Complementary completion services offered alongside fracturing; the company reported 28 wireline units and 30 cementing units as of June 30, 2026, with cementing operations serving the Permian Basin.
• Power generation (PROPWR) — Turnkey mobile power generation for oil and gas, industrial and data center customers; began revenue-generating activity in Q3 2025 and had approximately 350 megawatts of committed capacity as of July 30, 2026.

Recent performance

Second quarter 2026 total revenue was $306 million, up 13% from $271 million in the prior quarter. Net loss was $8 million, or $0.07 per diluted share, compared with a net loss of $4 million, or $0.03 per diluted share, in the prior quarter. Adjusted EBITDA was $45 million, or 15% of revenue, up 23% sequentially. Capital expenditures paid were $61 million and incurred were $71 million; net cash provided by operating activities was $66 million and net cash used in investing activities was $58 million. Management attributed the loss partly to upfront costs of standing up a twelfth fleet, downtime on a temporary out-of-basin fleet deployment, and severe June weather in the Permian Basin.

Strategy

ProPetro is pursuing two platforms: completions and PROPWR power generation. In completions, it is activating a thirteenth fleet expected to begin contributing near the end of the third quarter of 2026, and it continues transitioning its fleet toward lower-emissions equipment, including Tier IV DGB dual-fuel and FORCE electric-powered hydraulic fracturing fleets. PROPWR is expanding: committed power generation capacity reached approximately 350 megawatts as of July 30, 2026, up by about 110 megawatts across two projects since the prior earnings update, and total delivered or on-order capacity was approximately 1.1 gigawatts excluding equipment not yet ordered under a global framework agreement with Caterpillar Inc. The company said it is negotiating additional contracts and exploring financing alternatives for its power equipment.

Risks

• Oil and gas price and spending cyclicality — Demand depends on customers' capital spending in the Permian Basin, and the average WTI oil price fell to approximately $65 per barrel in 2025 from $76 in 2024, contributing to reduced customer spending.
• Customer concentration in the Permian Basin — Operations are primarily focused in the Permian Basin, so a regional decline in E&P activity would disproportionately affect revenue.
• Power segment execution and delivery risk — PROPWR depends on contracted equipment deliveries; as of February 19, 2026, all ordered units were expected by year-end 2027, but the July 30, 2026 update said remaining ordered units are anticipated by late fiscal year 2028.
• Fleet transition and utilization — The company has stated that available fleet capacity could decline if it reconfigures fleets to increase active and backup HHP at well sites amid the industry shift to lower-emissions equipment and Simul-Frac.

Outlook

Management said the completions market continues to tighten as industry attrition has reduced available frac capacity, with the Permian Basin rig count up nearly 10% off its first-quarter low, and noted early pricing momentum. The company decided to activate a thirteenth fleet expected to begin contributing near the end of the third quarter of 2026. For PROPWR, it is advancing over 100 megawatts of additional negotiations and multiple data center opportunities, including several hundred megawatts in advanced discussions. Management also cited uncertainty around the broader macro environment and the impacts from the Iran War.