Education
About Us
Working with TipRanks
Follow Us
Propetro Holding (PUMP)
:PUMP
Top Page
Propetro Holding
(NYSE:PUMP)
58Neutral
Positive Factors
Business Expansion
The company is aggressively building out its Power Solutions business, which is expected to contribute significantly to future earnings.
Operational Efficiency
The company's fleet, which largely consists of dual-fuel and electric assets, remains in strong demand due to its efficiency and fuel cost savings.
Strategic Investments
ProPetro is strategically prioritizing investments in electric frac fleets and pursuing accretive mergers and acquisitions.
Negative Factors
Market Challenges
The supply-demand imbalance for natural gas power generation solutions presents challenges despite the formation of PROPWR.
Resource Allocation
The aggressive expansion and capital allocation towards power solutions may strain financial resources.
Propetro Holding (PUMP) vs. S&P 500 (SPY)
Market Cap
$782.02M
Dividend YieldN/A
Average Volume (3M)1.98M
Price to Earnings (P/E)―
Beta (1Y)0.85
Revenue Growth-11.42%
EPS Growth-278.57%
CountryUS
Employees1,900
SectorEnergy
Sector Strength87
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)-1.33
Shares Outstanding103,168,655
10 Day Avg. Volume1,742,497
30 Day Avg. Volume1,979,159
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.52
Price to Cash Flow (P/CF)4.90
P/FCF Ratio4.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$11.00Price Target Upside45.12% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
Propetro Holding Business Overview & Revenue Model
Company DescriptionProPetro Holding Corp. (PUMP) is a leading oilfield services company based in the United States, primarily focused on providing hydraulic fracturing services to upstream oil and natural gas companies. Operating in the Permian Basin, one of the most prolific oil-producing areas in the country, ProPetro offers a range of services designed to enhance the extraction and production efficiency of its clients' oil and gas operations.
How the Company Makes MoneyProPetro Holding Corp. generates revenue primarily through the provision of hydraulic fracturing services to oil and natural gas exploration and production companies. The company's revenue model is largely based on service contracts with these companies, where it charges for its hydraulic fracturing services based on factors such as the volume of fracturing operations, the complexity of the job, and the specific needs of the client. Additionally, ProPetro may benefit from partnerships and agreements with major energy companies that seek their specialized expertise to optimize well completion and production activities. The company's earnings are also influenced by the overall demand for oil and natural gas, which can be affected by global economic conditions, energy prices, and regulatory factors impacting the energy sector.
Propetro Holding Financial Statement Overview
Summary
Propetro Holding's financial performance is mixed. Income statement shows improved gross profit margin and operational efficiency, but with challenges in declining revenue and a negative net income. The balance sheet raises concerns with zero equity and liabilities, suggesting potential restructuring. However, cash flow is strong, indicating effective liquidity and cash management.Income Statement
Propetro Holding has seen a decline in revenue over the recent year, with a decrease from $1.63 billion in 2023 to $1.44 billion in 2024. The gross profit margin improved significantly from 19.5% in 2023 to 44.6% in 2024, indicating better cost management. However, the net profit margin has turned negative, with a net loss of $137.9 million in 2024, down from a net income of $85.6 million in 2023. EBIT margin improved to 36.7% in 2024 from 8.0% in 2023 despite the revenue drop, reflecting operational efficiency gains.50
Neutral
Balance Sheet
The balance sheet presents concerns with no stockholders' equity and liabilities in 2024, suggesting a potential restructuring or asset sale. No debt was reported in 2024, which may indicate reduced financial leverage but also lack of capital for growth. In 2023, the debt-to-equity ratio was 0.15, showing manageable leverage, and the equity ratio was 67.5%, indicating a solid equity base.30
Negative
Cash Flow
Operating cash flow remains strong at $252.3 million in 2024 despite a net loss, showing effective cash management. Free cash flow improved significantly from $3.9 million in 2023 to $252.3 million in 2024, highlighting strong cash generation even with negative net income. The operating cash flow to net income ratio is favorable, indicating efficient cash flow generation compared to earnings.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.44B | 1.63B | 1.28B | 874.51M | 789.23M | Gross Profit |
| 644.08M | 317.71M | 268.77M | 78.87M | 51.66M | EBIT |
| 529.76M | 130.34M | 168.59M | -3.18M | -35.98M | EBITDA |
| 50.30M | 301.70M | 293.58M | 65.55M | 21.17M | Net Income Common Stockholders |
| -137.86M | 85.63M | 2.03M | -54.19M | -107.02M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 3.66M | 41.10M | 99.14M | 111.92M | 68.77M | Total Assets |
| 1.22B | 1.48B | 1.34B | 1.06B | 1.05B | Total Debt |
| 175.42M | 148.58M | 33.16M | 466.00K | 799.00K | Net Debt |
| 124.97M | 115.22M | -55.70M | -111.45M | -67.97M | Total Liabilities |
| 407.37M | 481.92M | 381.75M | 234.93M | 179.97M | Stockholders Equity |
| 816.27M | 998.39M | 954.03M | 826.30M | 870.77M |
| Cash Flow | Free Cash Flow | |||
| 252.29M | 3.87M | -19.25M | 11.19M | 38.52M | Operating Cash Flow |
| 252.29M | 374.74M | 300.43M | 154.71M | 139.12M | Investing Cash Flow |
| -155.10M | -384.13M | -349.75M | -104.29M | -94.22M | Financing Cash Flow |
| -80.11M | -46.12M | 26.26M | -7.28M | -125.17M |
Propetro Holding Technical Analysis
Neutral
7.58
Price Trends
8.53
Negative
8.59
Negative
8.38
Negative
Market Momentum
-0.27
Negative
47.66
Neutral
79.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PUMP, the sentiment is Neutral. The current price of 7.58 is above the 20-day moving average (MA) of 7.28, below the 50-day MA of 8.53, and below the 200-day MA of 8.38, indicating a neutral trend. The MACD of -0.27 indicates Negative momentum. The RSI at 47.66 is Neutral, neither overbought nor oversold. The STOCH value of 79.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PUMP.
Propetro Holding Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $12.95B | 15.88 | 27.06% | 0.65% | 16.23% | 1403.29% | |
75 Outperform | $22.30B | 9.07 | 25.14% | 2.65% | -0.32% | -3.41% | |
70 Outperform | $1.20B | 13.14 | 8.55% | 2.88% | -12.52% | -52.79% | |
63 Neutral | $2.63B | 8.27 | 16.54% | 1.88% | -9.11% | -40.79% | |
58 Neutral | $782.02M | ― | -15.19% | ― | -11.42% | -278.57% | |
58 Neutral | $9.25B | 5.52 | -6.24% | 7.43% | -0.10% | -69.94% |
* Energy Sector Average
Performance Comparison
PUMP
Propetro Holding
7.58
-0.50
-6.19%
FTI
TechnipFMC
31.23
6.30
25.27%
HAL
Halliburton
25.34
-13.18
-34.22%
RES
RPC
5.62
-1.92
-25.46%
LBRT
Liberty Oilfield Services
16.22
-4.17
-20.45%
Propetro Holding Earnings Call Summary
Earnings Call Date: Feb 19, 2025 | % Change Since: -16.06% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Neutral
ProPetro's earnings call highlighted significant strategic initiatives, including the launch of Pro Power and the high demand for next-generation equipment, contributing to optimistic growth prospects. However, these positives were tempered by revenue decline, a fourth quarter net loss, and safety concerns, resulting in a balanced overall sentiment.Highlights
Pro Power Launch and Growth
ProPetro announced the launch of a new business line, Pro Power, with an initial order of 140 megawatts of natural gas power generation equipment. The company plans to expand this capacity further, focusing on both oilfield and potential industrial applications, including data centers.
High Utilization of Next-Generation Equipment
Approximately 75% of ProPetro's fleet consists of next-generation gas-burning equipment, which remains highly utilized and in strong demand. The company plans to deploy a fifth electric fleet in 2025.
Strong Free Cash Flow and Capital Discipline
Despite an 11% revenue decrease from 2023, ProPetro reduced capital expenditures by 57% and increased free cash flow over nine times to $118 million. The company also returned $111 million of capital to shareholders through its share repurchase program.
Cementing Business Strength
The cementing business, particularly in the Permian Basin, is highlighted as a bright spot with significant potential for growth and contributions to the company's financial strength.
Lowlights
Revenue Decline
ProPetro reported an 11% decline in revenue from 2023, attributed to challenging market conditions and typical seasonality affecting utilization rates.
Net Loss for Fourth Quarter 2024
The company reported a net loss of $17 million for the fourth quarter, including a non-cash impairment expense of $24 million related to the wireline reporting unit.
Wireline Business Weakness
The wireline segment experienced weaker pricing and demand, with efforts underway to integrate services and improve efficiency.
Safety Incident
A tragic incident resulted in a fatality and serious injury of employees at a job site, underscoring the inherent risks in the industry and emphasizing the importance of safety.
Company Guidance
In the recent ProPetro Holding Corp. earnings call for the fourth quarter and full fiscal year 2024, the company provided several key metrics and strategic insights. Despite an 11% decline in revenue from 2023, ProPetro increased its free cash flow over nine times to $118 million, attributed to a 57% reduction in capital expenditures and operational efficiencies. Approximately 75% of ProPetro's fleet now consists of next-generation gas-burning equipment, with plans to deploy a fifth electric fleet in 2025. The company also announced the launch of Pro Power, with an initial order of 140 megawatts of natural gas power generation equipment. ProPetro anticipates full-year 2025 capital expenditures to range between $300 million and $400 million, split evenly between completions businesses and growth capital for Pro Power. As of December 31, 2024, ProPetro's liquidity was strong, with $161 million, including $50 million in cash and available credit. The company remains focused on prudent capital allocation, including share repurchases and a commitment to maintaining a disciplined approach to growth and operational excellence.Propetro Holding Corporate Events
Executive/Board Changes
ProPetro Holding Announces CFO Departure and Interim Replacement
Neutral
Mar 4, 2025
On March 4, 2025, ProPetro Holding Corp. announced the departure of its Chief Financial Officer, David S. Schorlemer, effective March 3, 2025. Celina A. Davila, currently the Chief Accounting Officer, will assume the role of principal financial officer on an interim basis. The company has initiated a search for a new CFO. This transition is supported by a retention bonus agreement with Davila, ensuring continuity in leadership during this period.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.