ProPetro Reports Financial Results for the Fourth Quarter and Full Year of 2024

MIDLAND, Texas–(BUSINESS WIRE)–ProPetro Holding Corp. (“ProPetro” or “the Company”) (NYSE: PUMP) today announced financial and operational results for the fourth quarter and full year of 2024.

Full Year 2024 Results and Highlights

• Revenue was $1.4 billion, an 11% decrease from 2023.
• Net loss was $138 million ($1.31 loss per diluted share) as compared to net income of $86 million ($0.76 income per diluted share) in 2023.
• Adjusted Net Income⁽¹⁾ was $29 million which excludes noncash impairment expenses.
• Adjusted EBITDA⁽¹⁾ was $283 million, a 30% decrease from 2023.
• Announced the formation of PROPWR^℠, our new power generation business, with total ordered capacity of 140 megawatts of power generation equipment.
• Completed the acquisition of Aqua Prop, LLC (“AquaProp^℠“).
• Repurchased and retired 7.2 million shares during 2024 with total repurchases of 13.0 million shares representing approximately 11% of our outstanding common stock since plan inception in May 2023.
• Reduced incurred capital expenditures to $133 million, a decrease of 57% from 2023.
• Net cash provided by operating activities, Free Cash Flow⁽²⁾ and Free Cash Flow adjusted for Acquisition Consideration⁽²⁾ were $252 million, $97 million, and $118 million, respectively.
• Four FORCE^® electric-powered hydraulic fracturing fleets are now operating under contract with leading customers with a fifth expected to be deployed in 2025.
• Our FORCE^® electric and Tier IV DGB Dual-fuel fleets now represent approximately 75% of our hydraulic fracturing capacity.
• Published our second ProPetro | ProEnergy | ProPeople Sustainability Report in October of 2024.

Fourth Quarter 2024 Results and Highlights

• Revenue was $321 million compared to $361 million for the prior quarter.
• Net loss of $17 million, or $0.17 per diluted share, compared to net loss of $137 million, or $1.32 per diluted share, for the prior quarter.
• Adjusted net loss⁽¹⁾ was $596 thousand which excludes noncash impairment expenses.
• Adjusted EBITDA⁽¹⁾ was $53 million compared to $71 million in the prior quarter.
• Capital expenditures incurred of $25 million.
• Repurchased and retired 0.4 million shares.
• Placed orders for 140 megawatts of power generation equipment for our PROPWR business.
• Divested Vernal, Utah, cementing operations on November 1, 2024.

(1)		Adjusted Net Income (Loss) and Adjusted EBITDA are non-GAAP financial measures and are described and reconciled to net income (loss) in the table under “Non-GAAP Financial Measures.”
(2)		Free Cash Flow and Free Cash Flow adjusted for Acquisition Consideration are non-GAAP financial measures and are described and reconciled to net cash from operating activities in the table under “Non-GAAP Financial Measures.”

Sam Sledge, Chief Executive Officer, commented, “Thanks to the hard work and dedication of the ProPetro team, our fourth-quarter and fiscal year results reflect the merits of our strategy and the resilience of our business model. 2024 was a pivotal year for ProPetro, and our results further validate our ability to drive value despite broader industry-wide challenges. We maintained stable pricing, delivered strong free cash flow, and continued to optimize our fleet with next-generation equipment. We also successfully expanded our service offerings with the launch of PROPWR, our power generation business, opening a new avenue for growth and allowing us to meet the increasing demand for reliable, low-cost power solutions in the Permian Basin. We expect the opportunities to deliver value to our existing and new customers seeking power generation solutions to be significant. We are confident we are taking the right steps to drive long-term value creation and resilient free cash flow for shareholders.”

David Schorlemer, Chief Financial Officer, said, “Despite the expected seasonal slowdown in the fourth quarter, the Company continued to demonstrate strong financial performance, maintaining free cash flow generation and a healthy balance sheet. Most noteworthy, the Company reduced its capital expenditures by nearly 60% compared to 2023. This significant achievement highlights the effectiveness of our team’s optimization efforts in extending equipment life and our strategic deployment of lower capital-intensity assets, namely our FORCE^® electric frac fleets. Additionally, we returned $111 million of capital through our share repurchase program since its inception in May 2023 while also improving our working capital position year-over-year. Our ability to prudently manage capital while funding strategic growth initiatives reflects our Company’s unique attributes, paired with our focus on financial and operational discipline. Thanks to the investments made over the past several years, today ProPetro is a stronger and more resilient company, poised for sustainable long-term value creation.”

Fourth Quarter 2024 Financial Summary

Revenue was $321 million, compared to $361 million for the third quarter of 2024. The decrease in revenue is primarily attributable to our decreased hydraulic fracturing utilization caused by seasonality and holiday impacts.

Cost of services, excluding depreciation and amortization of approximately $48 million, decreased to $243 million from $268 million during the third quarter of 2024.

General and administrative expense of $29 million increased from $27 million in the third quarter of 2024. General and administrative expense excluding non-recurring and non-cash stock-based compensation of $4 million, non-cash business acquisition contingent consideration adjustments of -$1 million and other non-recurring expenses of $1 million was $25 million, or 8% of revenue, compared to 6% for the third quarter of 2024.

Net loss totaled $17 million, or $0.17 per diluted share, compared to net loss of $137 million, or $1.32 per diluted share, for the third quarter of 2024. The net loss for the fourth quarter included a noncash impairment expense of $24 million related to full impairment of the goodwill in our wireline reporting unit. The net loss for the prior quarter included a noncash impairment expense of $189 million related to the Company’s Tier II diesel-only pumping units and related conventional equipment in our hydraulic fracturing operating segment which currently represent a diminishing part of our active fleets.

Adjusted EBITDA decreased to $53 million from $71 million for the third quarter of 2024. The decrease in Adjusted EBITDA was primarily attributable to our decreased hydraulic fracturing and wireline utilization caused by seasonality and holiday impacts. Moreover, we elected to keep all fleets staffed despite the decreased utilization, in our anticipation of our customers resuming operations in early January 2025.

Liquidity and Capital Spending

As of December 31, 2024, we had cash and cash equivalents of $50 million and borrowings under our ABL Credit Facility were $45 million. Total liquidity at the end of the fourth quarter of 2024 was $161 million, which included cash and cash equivalents and $111 million of available borrowing capacity under our ABL Credit Facility.

Capital expenditures incurred during the fourth quarter of 2024 were $25 million, the majority of which related to maintenance expenditures and support equipment for our FORCE^® electric frac fleet offering. Net cash used in investing activities as shown on the statement of cash flows during the fourth quarter of 2024 was $24 million.

Share Repurchases

The Company repurchased and retired 7.2 million shares during 2024. During the fourth quarter of 2024, the Company repurchased and retired 0.4 million shares, bringing the total repurchases to 13.0 million shares, representing approximately 11% of our outstanding common stock since plan inception in May 2023.

PROPWR Update

In December, we announced an initial order for over 110 megawatts of natural gas-fueled power generation equipment, valued at $122 million. Approximately $104 million of this amount, beyond the initial down payment, will be financed. Subsequently, we entered into a separate agreement with another equipment manufacturer to purchase an additional 30 megawatts of power generation equipment, valued at $25 million, which will be funded through our cash flow.

We plan to place further orders for additional power generation capacity in the coming weeks and months as we finalize customer contracts and assess future demand from our customers. The majority of these deliveries are anticipated in the second half of 2025 and early 2026, bringing our total capacity to between approximately 150 and 200 megawatts in early 2026. We aim to continue expanding this business line over the next several years, given favorable market conditions and demand trends.

We have made progress in obtaining customer commitments and are actively negotiating long-term contracts for our incoming equipment.

Guidance

The Company anticipates full-year 2025 capital expenditures to be between $300 million and $400 million. Of this, the completions business is expected to account for $150 million to $200 million, while an additional $150 million to $200 million will be allocated for growth capital expenditures in our PROPWR business. The Company expects to finance a significant portion of the PROPWR capital expenditures.

During the fourth quarter of 2024, 14 hydraulic fracturing fleets were active but experienced white space due to holiday and seasonality impacts. The Company expects to run between 14 and 15 frac fleets in the first quarter of 2025.

Outlook

Mr. Sledge concluded, “Looking ahead, we are excited about the opportunities in front of us and enter 2025 with great momentum, a strong foundation, and a clear vision for the future. Our fleet modernization efforts will continue to drive efficiencies for our customers while enhancing our competitive positioning. At the same time, the introduction of PROPWR represents an exciting avenue for growth, positioning ProPetro to capitalize on the supply demand imbalance for natural gas power generation solutions across a number of verticals in the energy industry and beyond. With a strong balance sheet, disciplined capital allocation program, and unwavering focus on operational excellence, we believe 2025 will be another positive year for ProPetro.”

Conference Call Information

The Company will host a conference call at 8:00 AM Central Time on February 19, 2025, to discuss financial and operating results for the fourth quarter of 2024. 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 4912422. The Company has also posted the scripted remarks on its website.

About ProPetro

ProPetro Holding Corp. is a Midland, Texas-based provider of premium completion services to leading upstream oil and gas companies engaged in the exploration and production of North American unconventional oil and natural gas resources. We help bring reliable energy to the world. For more information visit www.propetroservices.com.

Forward-Looking Statements

Except for historical information contained herein, the statements and information in this news release and discussion in the scripted remarks described above are forward-looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Statements that are predictive in nature, that depend upon or refer to future events or conditions or that include the words “may,” “could,” “plan,” “project,” “budget,” “predict,” “pursue,” “target,” “seek,” “objective,” “believe,” “expect,” “anticipate,” “intend,” “estimate,” “will,” “should” and other expressions that are predictions of, or indicate, future events and trends or that do not relate to historical matters generally identify forward‑looking statements. Our forward‑looking statements include, among other matters, statements about the supply of and demand for hydrocarbons, our business strategy, industry, projected financial results and future financial performance, expected fleet utilization, sustainability efforts, the future performance of newly improved technology, expected capital expenditures, the impact of such expenditures on our performance and capital programs, our fleet conversion strategy, our share repurchase program, and the anticipated commercial prospects of PROPWR, including our ability to successfully commence operations, the demand for its services and anticipated benefits of the new business line. A forward‑looking statement may include a statement of the assumptions or bases underlying the forward‑looking statement. We believe that we have chosen these assumptions or bases in good faith and that they are reasonable.

Although forward‑looking statements reflect our good faith beliefs at the time they are made, forward-looking statements are subject to a number of risks and uncertainties that may cause actual events and results to differ materially from the forward-looking statements. Such risks and uncertainties include the volatility of oil prices, changes in the supply of and demand for power generation, the risks associated with the establishment of a new service line, including delays, lack of customer acceptance and cost overruns, the global macroeconomic uncertainty related to the conflict in the Middle East region and the Russia-Ukraine war, general economic conditions, including the impact of continued inflation, central bank policy actions, the risk of a global recession, changes in U.S. trade policy, including proposed tariffs, and other factors described in the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, particularly the “Risk Factors” sections of such filings, and other filings with the Securities and Exchange Commission (the “SEC”). In addition, the Company may be subject to currently unforeseen risks that may have a materially adverse impact on it. Accordingly, no assurances can be given that the actual events and results will not be materially different than the anticipated results described in the forward-looking statements. Readers are cautioned not to place undue reliance on such forward-looking statements and are urged to carefully review and consider the various disclosures made in the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other filings made with the SEC from time to time that disclose risks and uncertainties that may affect the Company’s business. The forward-looking statements in this news release are made as of the date of this news release. ProPetro does not undertake, and expressly disclaims, any duty to publicly update these statements, whether as a result of new information, new developments or otherwise, except to the extent that disclosure is required by law.

PROPETRO HOLDING CORP. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited)
		Three Months Ended												Years Ended
		December 31, 2024				September 30, 2024				December 31, 2023				December 31, 2024				December 31, 2023
REVENUE – Service revenue		$	320,554			$	360,868			$	347,776			$	1,444,286			$	1,630,399
COSTS AND EXPENSES:
Cost of services (exclusive of depreciation and amortization)			243,473				267,555				261,034				1,065,514				1,131,801
General and administrative expenses (inclusive of stock‑based compensation)			28,631				26,556				27,990				114,323				114,354
Depreciation and amortization			47,706				54,299				62,152				211,733				180,886
Property and equipment impairment expense			—				188,601				—				188,601				—
Goodwill impairment expense			23,624				—				—				23,624				—
(Gain) loss on disposal of assets and business			(4,433	)			2,149				4,883				7,451				73,015
Total costs and expenses			339,001				539,160				356,059				1,611,246				1,500,056
OPERATING (LOSS) INCOME			(18,447	)			(178,292	)			(8,283	)			(166,960	)			130,343
OTHER (EXPENSE) INCOME:
Interest expense			(1,882	)			(1,939	)			(2,292	)			(7,815	)			(5,308	)
Other (expense) income, net			(76	)			1,799				(7,784	)			5,531				(9,533	)
Total other income (expense)			(1,958	)			(140	)			(10,076	)			(2,284	)			(14,841	)
INCOME (LOSS) BEFORE INCOME TAXES			(20,405	)			(178,432	)			(18,359	)			(169,244	)			115,502
INCOME TAX BENEFIT (EXPENSE)			3,343				41,365				1,250				31,385				(29,868	)
NET (LOSS) INCOME		$	(17,062	)		$	(137,067	)		$	(17,109	)		$	(137,859	)		$	85,634
NET (LOSS) INCOME PER COMMON SHARE:
Basic		$	(0.17	)		$	(1.32	)		$	(0.16	)		$	(1.31	)		$	0.76
Diluted		$	(0.17	)		$	(1.32	)		$	(0.16	)		$	(1.31	)		$	0.76
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic			102,953				104,121				110,164				105,469				113,004
Diluted			102,953				104,121				110,164				105,469				113,416
NOTE: Business acquisition contingent consideration adjustment of $1.8 million has been reclassified from other income (expense) to general and administrative expenses for the three months ended September 30, 2024, to conform to the presentation for the three months and year ended December 31, 2024. There is no impact to net loss due to this reclassification.

PROPETRO HOLDING CORP. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share data) (Unaudited)
		December 31, 2024				December 31, 2023
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	50,443			$	33,354
Accounts receivable – net of allowance for credit losses of $0 and $236, respectively			195,994				237,012
Inventories			16,162				17,705
Prepaid expenses			17,719				14,640
Short-term investment, net			7,849				7,745
Other current assets			4,054				353
Total current assets			292,221				310,809
PROPERTY AND EQUIPMENT – net of accumulated depreciation			688,225				967,116
OPERATING LEASE RIGHT-OF-USE ASSETS			132,294				78,583
FINANCE LEASE RIGHT-OF-USE ASSETS			30,713				47,449
OTHER NONCURRENT ASSETS:
Goodwill			920				23,624
Intangible assets – net of amortization			64,905				50,615
Other noncurrent assets			14,367				2,116
Total other noncurrent assets			80,192				76,355
TOTAL ASSETS		$	1,223,645			$	1,480,312
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable		$	92,963			$	161,441
Accrued and other current liabilities			70,923				75,616
Operating lease liabilities			39,063				17,029
Finance lease liabilities			19,317				17,063
Total current liabilities			222,266				271,149
DEFERRED INCOME TAXES			59,770				93,105
LONG-TERM DEBT			45,000				45,000
NONCURRENT OPERATING LEASE LIABILITIES			58,849				38,600
NONCURRENT FINANCE LEASE LIABILITIES			13,187				30,886
OTHER LONG-TERM LIABILITIES			8,300				3,180
Total liabilities			407,372				481,920
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS’ EQUITY:
Preferred stock, $0.001 par value, 30,000,000 shares authorized, none issued, respectively			—				—
Common stock, $0.001 par value, 200,000,000 shares authorized, 102,994,958 and 109,483,281 shares issued and outstanding, respectively			103				109
Additional paid-in capital			884,995				929,249
Retained earnings (accumulated deficit)			(68,825	)			69,034
Total shareholders’ equity			816,273				998,392
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	1,223,645			$	1,480,312

PROPETRO HOLDING CORP. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)
		Years Ended December 31,
			2024				2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income		$	(137,859	)		$	85,634
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization			211,733				180,886
Property and equipment impairment expense			188,601				—
Goodwill impairment expense			23,624				—
Deferred income tax (benefit) expense			(33,336	)			27,840
Amortization of deferred revenue rebate			438				359
Stock‑based compensation			17,288				14,450
Provision for credit losses			—				34
Loss on disposal of assets and businesses, net			7,451				73,015
Unrealized (gain) loss on short-term investment			(105	)			2,538
Business acquisition contingent consideration adjustments			(2,600	)			—
Changes in operating assets and liabilities:
Accounts receivable			51,498				(12,408	)
Other current assets			(2,301	)			(831	)
Inventories			1,543				(6,017	)
Prepaid expenses			1,327				(6,143	)
Accounts payable			(64,501	)			(11,429	)
Accrued and other current liabilities			(10,506	)			26,814
Net cash provided by operating activities			252,295				374,742
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures			(140,297	)			(370,869	)
Business acquisitions, net of cash acquired			(21,038	)			(22,215	)
Proceeds from sale of assets			6,236				8,957
Net cash used in investing activities			(155,099	)			(384,127	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings			—				30,000
Repayments of borrowings			—				(15,000	)
Payments of finance lease obligation			(17,676	)			(4,663	)
Repayments of insurance financing			(970	)			—
Payment of debt issuance costs			—				(1,179	)
Tax withholdings paid for net settlement of equity awards			(1,909	)			(3,543	)
Share repurchases			(59,108	)			(51,738	)
Payment of excise taxes on share repurchases			(444	)			—
Net cash used in financing activities			(80,107	)			(46,123	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			17,089				(55,508	)
CASH AND CASH EQUIVALENTS — Beginning of year			33,354				88,862
CASH AND CASH EQUIVALENTS — End of year		$	50,443			$	33,354

Reportable Segment Information

	Three Months Ended
	December 31, 2024
(in thousands)	Hydraulic Fracturing			Wireline			Cementing			All Other				Reconciling Items				Total
Service revenue	$	236,934		$	45,217		$	38,476		$	—			$	(73	)		$	320,554
Adjusted EBITDA for reportable segments	$	54,597		$	7,084		$	6,106		$	(370	)		$	(14,761	)		$	52,656
Depreciation and amortization	$	40,359		$	5,329		$	1,998		$	—			$	20			$	47,706
Goodwill impairment expense (2)	$	—		$	23,624		$	—		$	—			$	—			$	23,624
Operating lease expense on FORCE® fleets (3)	$	14,500		$	—		$	—		$	—			$	—			$	14,500
Capital expenditures	$	21,173		$	1,627		$	1,959		$	—			$	4			$	24,763

	Three Months Ended
	September 30, 2024
(in thousands)	Hydraulic Fracturing			Wireline			Cementing			All Other			Reconciling Items				Total
Service revenue	$	274,138		$	47,958		$	38,920		$	—		$	(148	)		$	360,868
Adjusted EBITDA for reportable segments	$	66,166		$	9,194		$	8,989		$	—		$	(13,219	)		$	71,130
Depreciation and amortization	$	46,752		$	5,260		$	2,264		$	—		$	23			$	54,299
Property and equipment impairment expense (1)	$	188,601		$	—		$	—		$	—		$	—			$	188,601
Operating lease expense on FORCE® fleets (3)	$	12,516		$	—		$	—		$	—		$	—			$	12,516
Capital expenditures	$	33,465		$	1,757		$	1,575		$	—		$	38			$	36,83

		Year Ended
		December 31, 2024
(in thousands)		Hydraulic Fracturing			Wireline			Cementing			All Other				Reconciling Items				Total
Service revenue		$	1,092,000		$	203,182		$	149,411		$	—			$	(307	)		$	1,444,286
Adjusted EBITDA for reportable segments		$	270,505		$	43,857		$	26,539		$	(370	)		$	(57,288	)		$	283,243
Depreciation and amortization		$	182,188		$	20,633		$	8,812		$	—			$	100			$	211,733
Property and equipment impairment expense (1)		$	188,601		$	—		$	—		$	—			$	—			$	188,601
Goodwill impairment expense (2)		$	—		$	23,624		$	—		$	—			$	—			$	23,624
Operating lease expense on FORCE® fleets (3)		$	47,141		$	—		$	—		$	—			$	—			$	47,141
Capital expenditures		$	116,257		$	7,713		$	9,376		$	—			$	42			$	133,388
Goodwill		$	920		$	—		$	—		$	—			$	—			$	920
Total assets		$	961,485		$	156,349		$	73,935		$	—			$	31,876			$	1,223,645

Contacts

Investor Contacts:
David Schorlemer

Chief Financial Officer

david.schorlemer@propetroservices.com
432-227-0864

Matt Augustine

Director, Corporate Development and Investor Relations

matt.augustine@propetroservices.com
432-219-7620

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