ProPetro Holding: Q2 TAKE THREE

ProPetro (PUMP) expects its active frac spread count to drop to 10–11 in Q3 due to lower oil prices, tariffs, and disciplined operator activity. Despite weaker Q2 results and a $7 million net loss, nearly half its frac horsepower is under long-term contracts. The company stays invested in its PROPWR gas-powered equipment business, with strong order momentum. Cash flows declined, and capex guidance for FY2025 was lowered by 9% amid reduced completion activity.

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PUMP’s Frac Spread Count To Decline in Q3: During Q2, PUMP reduced its hydraulic fracturing spread count by one to 13-14 from the previous quarter. Its frac spreads included two Tier IV DGB dual-fuel and four FORCE electric-powered hydraulic fracturing spreads. It expects the active frac spread count to decline to 10-11 in Q3 as a result of the recent decline in oil prices, the effect of higher tariffs, OPEC+ production hike, and operators’ disciplined asset deployment. Nearly half of its active frac horsepower is on long-term contracts.

The management, however, remains bullish on its natural gas-fueled power generation equipment business, which it carries out under a subsidiary called PROPWR. It plans to allocate $170 million of in capex in FY2025 and $60 million in FY2026 to support the current PROPWR equipment orders. It expects to secure long-term agreements for all of its currently ordered equipment by the end of 2025. Read more about this in our recent article here .

Key Metrics Deteriorated In Q2 : Quarter-over-quarter, PUMP's revenues from the Hydraulic Fracturing segment decreased by 9% in Q2 2025, while its adjusted EBITDA fell by 24%. Its revenues and adjusted EBITDA from the Wireline segment witnessed a similar fall in Q2 compared to Q1. Lower completion activity translated into lower asset utilization, while adverse weather also impacted results in Q2. From Q1 to Q2, its net income turned to a net loss of $7 million.

PUMP's Cash Flows and Capex Guidance : PUMP's cash flow from operations decreased (by 39%) in 6M 2025 compared to 6M 2024. Its free cash flow also sharply reduced during this period. The company's debt-to-equity ratio also deteriorated, rising to 0.06x as of June 30, 2025. It lowered its FY2025 capex guidance by 9% from the prior guidance, given the ongoing decline in completion activity and the anticipated utilization forecast.

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.

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