ProPetro Holding: Q4 TAKE THREE

In Q4 2024, ProPetro’s revenues and adjusted EBITDA in all three segments decreased. Free cash flow, however, improved substantially as capex fell. In 2025, its planned capex is much higher as the company plans to focus on the natural gas-fueled power generation business.

[ihc-hide-content ihc_mb_type="show" ihc_mb_who="10,13,14,16,18,19,20,21,22,23,24,25" ihc_mb_template="1"]

PUMP Targets NG-Fueled Power Generation: During Q4, PUMP had 14 hydraulic fracturing spreads operating. Among these, four were electric frac spreads (FORCE). In Q1 2025, it plans to run 14-15 frac spreads. It also plans to deploy the fifth FORCE unit in 2025. It also estimates that its electric and Tier IV DGB (dual-fuel frac spreads) account for nearly 75% of its hydraulic fracturing capacity.

In December, PUMP received an initial order of 110 megawatts of natural gas-fueled power generation equipment with a further agreement to purchase an additional 30 MW. It will carry out the business under a subsidiary called PROPWR. The deliveries, expected to be spread in Q2 2025 and 2026, will bring the total capacity to 150 MW - 200 MW. PUMP’s management has robust plans and high expectations from the PROPWR as it aims to benefit from the “supply-demand imbalance for natural gas power generation solutions.” Read more about this in our recent article here .

Key Metrics Weakened In Q4 : Quarter-over-quarter, PUMP's revenues from the Hydraulic Fracturing segment decreased by 14% in Q4 2024, while its adjusted EBITDA decreased by 17%. Its revenues and adjusted EBITDA from the Wireline segment declined by 6% and 23%, respectively. Lower hydraulic fracturing and wireline utilization due to seasonality primarily caused the deterioration in its financial results. During Q4, it recorded ~$24 million in charges related to its goodwill impairment of the wireline reporting unit. During Q4, it also divested its Utah cementing operations.

PUMP's Cash Flows And Repurchase : PUMP's cash flow from operations decreased significantly (by 33%) in FY2024 compared to FY2023. Its free cash flow, however, increased significantly as capex fell even more sharply during this period. The company's debt-to-equity deteriorated marginally, rising to 0.06x as of December 31, 2024. It repurchased and retired 0.4 million shares in Q4. Its FY2025 planned capex is nearly 150% higher than FY2024, due primarily to additional allocation to the recently acquired PROPWR business.

Thanks for reading the PUMP Take Three, designed to give you three critical takeaways from PUMP's earnings report. Soon, we will present a second update on PUMP earnings, highlighting its current strategy, news, and notes we extracted from our deeper dive.

Premium/Monthly ------------------------------------------------------------------------------------------------------------- [ihc-hide-content ihc_mb_type="show" ihc_mb_who="10,13,14,16,18,19,20,21,22,23,24,25" ihc_mb_template="1"] [/ihc-hide-content] [ump-visitor ] To unlock the content you need a Premium or Enterprise Account! [/ump-visitor]