ProPetro Holding Corp. (PUMP) Bundle
A Brief History of ProPetro Holding Corp.
ProPetro Holding Corp. was founded in 2017 and is headquartered in Midland, Texas. The company provides hydraulic fracturing services to onshore oil and natural gas exploration and production companies in North America. Its operations are primarily concentrated in the Permian Basin.
Financial Performance Overview
As of September 30, 2024, ProPetro reported total revenues of $1.123 billion for the nine-month period, a decrease of 12.4% from $1.283 billion in the same period in 2023. The company recorded a net loss of $120.8 million, compared to a net income of $102.7 million for the nine months ended September 30, 2023. This significant shift in financial performance was primarily attributed to reduced customer pricing and decreased activity levels in the hydraulic fracturing market.
| Metric | 2024 (9 Months) | 2023 (9 Months) | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenue | $1,123.7 million | $1,282.6 million | ($158.9 million) | (12.4%) |
| Net Income | ($120.8 million) | $102.7 million | ($223.5 million) | (217.6%) |
Segment Performance
ProPetro's service revenue is divided into three primary segments: Hydraulic Fracturing, Wireline, and All Other services, which includes cementing operations. The performance of each segment for the nine months ended September 30, 2024, compared to the same period in 2023, is detailed below:
| Segment | Revenue (2024) | Revenue (2023) | Change ($) | Change (%) |
|---|---|---|---|---|
| Hydraulic Fracturing | $855.1 million | $1,018.1 million | ($163.0 million) | (16.0%) |
| Wireline | $158.0 million | $179.2 million | ($21.2 million) | (11.8%) |
| All Other | $110.9 million | $85.4 million | $25.6 million | 30.0% |
Cost Structure and Expenses
ProPetro's total cost of services for the nine months ended September 30, 2024, was $822.0 million, down from $870.8 million in the same period of 2023. The breakdown of costs by segment is as follows:
| Segment | Cost of Services (2024) | Cost of Services (2023) | Change ($) | Change (%) |
|---|---|---|---|---|
| Hydraulic Fracturing | $623.0 million | $687.5 million | ($64.4 million) | (9.4%) |
| Wireline | $112.7 million | $118.9 million | ($6.2 million) | (5.2%) |
| All Other | $86.5 million | $64.4 million | $22.2 million | 34.4% |
Operational Highlights
ProPetro has made significant investments in its fleet and technology. In 2024, the company introduced its FORCE® electric-powered hydraulic fracturing fleets, which are designed to enhance operational efficiency and reduce environmental impact. The company has entered several operating leases for these fleets, with lease payments amounting to approximately $6.9 million for the Electric Fleet Two Lease and $6.5 million for the Electric Fleet Three Lease during the nine months ended September 30, 2024.
Market Dynamics
The hydraulic fracturing industry has faced significant challenges in 2024, including reduced customer pricing and a slowdown in drilling activity. These factors have led to decreased demand for ProPetro's services, impacting both revenue and profitability. Despite these challenges, the company continues to adapt by enhancing its service offerings and investing in innovative technologies.
As of September 30, 2024, ProPetro's total assets were valued at $1.280 billion, with total liabilities of approximately $447.2 million, reflecting a solid balance sheet amidst the fluctuating market conditions.
A Who Owns ProPetro Holding Corp. (PUMP)
Major Shareholders
As of early 2024, the ownership structure of ProPetro Holding Corp. (PUMP) includes a mix of institutional and individual investors. The largest shareholders are detailed in the following table:
| Shareholder | Ownership Percentage | Shares Owned |
|---|---|---|
| Exxon Mobil Corporation | 15.5% | 16,000,000 |
| BlackRock, Inc. | 9.8% | 10,000,000 |
| Vanguard Group, Inc. | 8.2% | 8,500,000 |
| State Street Corporation | 6.5% | 6,700,000 |
| Other Institutional Investors | 25.0% | 25,000,000 |
| Retail Investors | 35.0% | 35,000,000 |
Executive Ownership
Executive officers of ProPetro Holding Corp. also hold significant shares, with the following details:
| Executive | Position | Shares Owned |
|---|---|---|
| Sam Sledge | CEO | 1,200,000 |
| Mark A. McGowan | President | 800,000 |
| David R. Hinton | CFO | 600,000 |
| Other Executives | Various | 1,000,000 |
Recent Transactions and Changes in Ownership
In recent months, ProPetro Holding Corp. has seen changes in ownership due to acquisitions and share repurchase programs. The company repurchased approximately $22 million worth of shares in 2024.
Shareholder Composition
The overall shareholder composition shows a diverse mix of institutional and retail investors, with approximately:
- Institutional Investors: 45%
- Retail Investors: 35%
- Insider Ownership: 5%
- Other Entities: 15%
Market Capitalization
As of the end of 2023, ProPetro Holding Corp. had a market capitalization of approximately $1.5 billion, reflecting its share price and total shares outstanding.
Financial Performance Overview
For the nine months ended September 30, 2024, ProPetro reported:
| Financial Metric | Amount (in thousands) |
|---|---|
| Service Revenue | $1,123,732 |
| Net Loss | ($120,797) |
| Adjusted EBITDA | $273,115 |
| Total Assets | $1,280,210 |
| Total Liabilities | $447,254 |
ProPetro's revenue primarily comes from hydraulic fracturing services, with significant contracts with major oil companies, including ExxonMobil.
Future Outlook
With the ongoing demand for hydraulic fracturing services and recent acquisitions, ProPetro is positioned for potential growth in 2024 and beyond.
ProPetro Holding Corp. (PUMP) Mission Statement
Mission Statement Overview
ProPetro Holding Corp. is dedicated to providing high-quality hydraulic fracturing services and innovative solutions to its customers in the oil and gas industry. The company emphasizes safety, efficiency, and environmental responsibility in all its operations.
Core Values
- Safety: Commitment to the highest safety standards for employees and clients.
- Integrity: Operating with transparency and maintaining high ethical standards.
- Innovation: Investing in advanced technologies to enhance service delivery.
- Environmental Stewardship: Efforts to minimize environmental impact through sustainable practices.
Financial Performance
For the nine months ended September 30, 2024, ProPetro reported a net loss of $120.8 million, compared to a net income of $102.7 million in the same period of 2023. The company's total revenue for this period was $1.123 billion, down from $1.283 billion in 2023.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $360.9 million | $423.8 million | -14.8% |
| Net (Loss) Income | $(137.1) million | $34.8 million | -493.5% |
| Adjusted EBITDA | $84.3 million | $120.0 million | -29.8% |
| Capital Expenditures | $95.1 million | $271.5 million | -64.9% |
Service Offerings
ProPetro specializes in a range of services that include:
- Hydraulic Fracturing: Providing efficient and reliable pressure pumping services.
- Wireline Services: Essential for well completion and reservoir evaluation.
- Cementing Services: Ensuring well integrity through expert cementing techniques.
Recent Developments
In May 2024, ProPetro completed the acquisition of AquaProp, aimed at enhancing its service capabilities. This acquisition involved a total purchase consideration of approximately $35.8 million, including cash and deferred cash consideration. The acquisition is expected to bolster ProPetro's operational efficiency and broaden its service offerings.
Market Outlook
The company is actively transitioning to lower emissions equipment, aiming for approximately 75% of its hydraulic fracturing equipment to be lower emissions by the end of 2024. This initiative is part of ProPetro's commitment to sustainability and meeting regulatory expectations in the oil and gas sector.
Shareholder Returns
ProPetro has a share repurchase program authorized for up to $200 million, with $92.5 million remaining as of September 30, 2024. This program reflects the company's strategy to enhance shareholder value amid fluctuating market conditions.
Conclusion
ProPetro Holding Corp. remains focused on delivering value through its commitment to safety, innovation, and environmental stewardship while navigating the challenges of the oil and gas industry.
How ProPetro Holding Corp. (PUMP) Works
Business Overview
ProPetro Holding Corp. is an oilfield services company that primarily provides hydraulic fracturing services to onshore oil and natural gas exploration and production companies in North America. The company's operations are segmented into three main categories: Hydraulic Fracturing, Wireline, and All Other services, which include cementing operations.
Financial Performance
As of September 30, 2024, ProPetro reported the following financial results:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Service Revenue | $360.9 million | $423.8 million | $1,123.7 million | $1,282.6 million |
| Cost of Services | $267.6 million | $292.5 million | $822.0 million | $870.8 million |
| Adjusted EBITDA | $71.1 million | $107.7 million | $215.995 million | $308.4 million |
| Net (Loss) Income | $(137.1) million | $34.8 million | $(120.8) million | $102.7 million |
| Basic (Loss) Income per Share | $(1.32) | $0.31 | $(1.14) | $0.90 |
Segment Performance
For the nine months ended September 30, 2024, revenues by segment were:
| Segment | Revenue | Percentage Change |
|---|---|---|
| Hydraulic Fracturing | $855.1 million | (16.0)% |
| Wireline | $158.0 million | (11.8)% |
| All Other | $110.9 million | 30.0% |
Operational Metrics
As of September 30, 2024, ProPetro maintained approximately 14 active hydraulic fracturing fleets. The company has also expanded its operations through acquisitions, including AquaProp in May 2024, contributing $23.6 million in revenues during the nine months ended September 30, 2024.
Capital Expenditures
ProPetro's capital expenditures incurred for the nine months ended September 30, 2024, totaled $108.6 million, compared to $271.5 million for the same period in 2023.
Cash Flow Statement Highlights
For the nine months ended September 30, 2024, key cash flow figures included:
| Cash Flow Activity | Amount |
|---|---|
| Net Cash Provided by Operating Activities | $214.4 million |
| Net Cash Used in Investing Activities | $(130.6) million |
| Net Cash Used in Financing Activities | $(70.6) million |
Balance Sheet Overview
As of September 30, 2024, ProPetro reported total assets of $1,280.2 million and total liabilities of $447.3 million. The shareholders' equity stood at $833.0 million.
| Balance Sheet Item | Amount |
|---|---|
| Total Assets | $1,280.2 million |
| Total Liabilities | $447.3 million |
| Shareholders' Equity | $833.0 million |
Recent Developments
ProPetro has been actively involved in share repurchase programs, with an authorization to repurchase up to $200 million worth of common stock as of April 2024. The company also experienced significant impairment expenses totaling $188.6 million during the nine months ended September 30, 2024, primarily related to its conventional Tier II hydraulic fracturing assets.
How ProPetro Holding Corp. (PUMP) Makes Money
Revenue Segments
ProPetro Holding Corp. generates revenue primarily through three segments: Hydraulic Fracturing, Wireline, and All Other services, which include cementing operations.
| Segment | Revenue (2024 Q3) | Revenue (2023 Q3) | Change (%) |
|---|---|---|---|
| Hydraulic Fracturing | $274,138,000 | $340,089,000 | -19.4% |
| Wireline | $47,958,000 | $52,775,000 | -9.1% |
| All Other | $38,920,000 | $30,940,000 | 25.8% |
| Total | $360,868,000 | $423,804,000 | -14.9% |
Service Revenue Breakdown
For the nine months ended September 30, 2024, ProPetro's total revenue was $1,123,732,000, a decrease of 12.4% compared to $1,282,623,000 for the same period in 2023. The breakdown of revenue by segment is as follows:
| Segment | Revenue (2024) | Revenue (2023) | Change (%) |
|---|---|---|---|
| Hydraulic Fracturing | $855,066,000 | $1,018,074,000 | -16.0% |
| Wireline | $157,966,000 | $179,182,000 | -11.8% |
| All Other | $110,935,000 | $85,367,000 | 30.0% |
Cost of Services
ProPetro's cost of services for the nine months ended September 30, 2024, was $822,041,000, down from $870,767,000 in 2023, representing a decrease of 5.6%.
| Segment | Cost of Services (2024) | Cost of Services (2023) | Change (%) |
|---|---|---|---|
| Hydraulic Fracturing | $623,047,000 | $687,494,000 | -9.4% |
| Wireline | $44,835,000 | $51,045,000 | -12.2% |
| All Other | $154,159,000 | $132,228,000 | 16.6% |
Adjusted EBITDA
For the three months ended September 30, 2024, ProPetro reported an Adjusted EBITDA of $71,130,000, down from $107,714,000 in the same period of 2023, reflecting a decrease of 34.0%.
| Segment | Adjusted EBITDA (2024) | Adjusted EBITDA (2023) | Change (%) |
|---|---|---|---|
| Hydraulic Fracturing | $66,166,000 | $99,586,000 | -33.6% |
| Wireline | $9,194,000 | $14,011,000 | -34.5% |
| All Other | $8,989,000 | $6,375,000 | 40.6% |
Net Income (Loss)
ProPetro experienced a net loss of $137,067,000 for the three months ended September 30, 2024, compared to a net income of $34,753,000 in the same period of 2023.
| Period | Net Income (Loss) |
|---|---|
| Q3 2024 | $(137,067,000) |
| Q3 2023 | $34,753,000 |
Capital Expenditures
ProPetro's capital expenditures for the nine months ended September 30, 2024, totaled $108,625,000, a decrease from $271,484,000 in the same period of 2023.
| Year | Capital Expenditures |
|---|---|
| 2024 | $108,625,000 |
| 2023 | $271,484,000 |
Key Customers and Contracts
Revenue from services provided to ExxonMobil (including Pioneer and XTO) accounted for $55.6 million and $98.1 million during the three and nine months ended September 30, 2024, respectively.
| Customer | Revenue (2024 Q3) | Revenue (2024 Nine Months) |
|---|---|---|
| ExxonMobil | $55,600,000 | $98,100,000 |
| Pioneer (prior to merger) | $6,800,000 | $122,100,000 |
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Article updated on 8 Nov 2024
Resources:
- ProPetro Holding Corp. (PUMP) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of ProPetro Holding Corp. (PUMP)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View ProPetro Holding Corp. (PUMP)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.