tiprankstipranks
Trending News
More News >
Propetro Holding (PUMP)
:PUMP
Advertisement

Propetro Holding (PUMP) AI Stock Analysis

Compare
298 Followers

Top Page

PUMP

Propetro Holding

(NYSE:PUMP)

Rating:48Neutral
Price Target:
$5.00
▲(4.60% Upside)
Propetro Holding's overall stock score is primarily impacted by its financial performance challenges, including negative profitability and inconsistent revenue growth. Technical analysis indicates a bearish trend, and valuation metrics are unattractive due to negative earnings. The earnings call provided some positive strategic insights but also highlighted significant declines in revenue and profit, contributing to an uncertain outlook.
Positive Factors
Business Expansion
The company is aggressively building out its Power Solutions business, which is expected to contribute significantly to future earnings.
Demand for Efficient Fleets
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
Equipment Utilization
The company has increased its power generation equipment capacity, indicating a potential for increased future earnings.
Market Competition
The formation of PROPWR allows the company to capitalize on the supply-demand imbalance for natural gas power generation solutions.
Operational Challenges
Management expects steady Permian Basin frac activity, with high utilization and demand for Tier IV dual-fuel and electric fleets.

Propetro Holding (PUMP) vs. SPDR S&P 500 ETF (SPY)

Propetro Holding Business Overview & Revenue Model

Company DescriptionProPetro Holding Corp., an oilfield services company, provides hydraulic fracturing and other related services. The company operates through Pressure Pumping and All Other segments. It offers cementing, acidizing, and coiled tubing services. The company serves oil and gas companies engaged in the exploration and production of North American oil and natural gas resources. As of December 31, 2021, its fleet comprised 12 hydraulic fracturing units with 1,423,000 hydraulic horsepower. ProPetro Holding Corp. was founded in 2007 and is headquartered in Midland, Texas.
How the Company Makes MoneyPropetro generates revenue primarily through its hydraulic fracturing services, which include pressure pumping for exploration and production companies in the oil and gas sector. The company charges its clients based on the volume of services provided, often structured around contracts that specify rates and terms for each project. Key revenue streams include fees for pressure pumping services, equipment rental, and ancillary services related to well completion and stimulation. Propetro also benefits from partnerships with major oil and gas producers, allowing it to secure long-term contracts and maintain a steady inflow of work, particularly in high-demand areas like the Permian Basin. Additionally, the company's operational efficiency and technological investments can lead to cost savings, further enhancing profit margins.

Propetro Holding Earnings Call Summary

Earnings Call Date:Jul 30, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 04, 2025
Earnings Call Sentiment Neutral
ProPetro demonstrated resilience in a challenging market environment with strategic investments in next-generation fleets and the successful launch of PROPWR. However, the company faced significant revenue and profit declines, alongside an uncertain market outlook and reduced fleet activity.
Q2-2025 Updates
Positive Updates
Introduction of New CFO
ProPetro welcomed Caleb Weatherl as the new Chief Financial Officer, bringing significant experience in the energy and financial sectors.
Next-Generation Fleet Expansion
75% of ProPetro's fleet is next-generation, including Tier IV DGB dual-fuel and FORCE electric fleets. Over 50% of active hydraulic horsepower is under long-term contracts.
PROPWR Success
ProPetro announced its inaugural contract for PROPWR, securing a 10-year agreement for 80 megawatts of power generation, with all 220 megawatts expected to be contracted by the end of 2025.
Strong Cash and Liquidity
ProPetro reported total cash of $75 million and total liquidity of $178 million, maintaining a strong financial position.
Resilient Free Cash Flow
Despite market challenges, ProPetro's Completions business generated $26 million in free cash flow.
Negative Updates
Decline in Revenue and Profit
Total revenue for Q2 2025 was $326 million, a decrease of 9% from the prior quarter. The net loss was $7 million compared to a net income of $10 million in Q1 2025.
Market Challenges and Fleet Reduction
The Permian Basin faces challenges with a reduction in active fleets from 90-100 to approximately 70, resulting in idle fleets and increased market uncertainty.
Adjusted EBITDA Decline
Adjusted EBITDA was $50 million, down 32% compared to the prior quarter, affected by the strategic decision to idle certain fleets.
Uncertain Outlook for Q3 and Q4 2025
ProPetro expects reduced activity in Q3 2025, operating 10 to 11 fleets, with potential further reductions in Q4 due to macroeconomic factors.
Company Guidance
During the ProPetro Holding Corp. Second Quarter 2025 Conference Call, the company provided detailed guidance on various metrics. They reported total revenue of $326 million, a 9% decrease from the previous quarter, and a net loss of $7 million, translating to a $0.07 loss per diluted share. Adjusted EBITDA was $50 million, representing 15% of revenue and a 32% decrease from the prior quarter. Despite macroeconomic challenges, ProPetro emphasized its commitment to capital discipline and highlighted that approximately 75% of its fleet is next-generation, with over 50% of its active hydraulic horsepower under long-term contracts. The company also discussed strategic investments in its PROPWR initiative, with 220 megawatts on order and plans to secure long-term contracts for all equipment by the end of 2025. Additionally, ProPetro adjusted its 2025 capital expenditure guidance, now expecting between $270 million and $310 million, down from previous estimates. The company reiterated its strong balance sheet position, with total liquidity of $178 million, including $75 million in cash.

Propetro Holding Financial Statement Overview

Summary
Propetro Holding faces significant challenges in profitability, with negative EBIT and net income margins. The balance sheet is stable with low leverage, but low return on equity due to negative net income. Cash flow is positive but impacted by profitability issues.
Income Statement
45
Neutral
Propetro Holding's income statement reflects significant challenges in profitability and growth. The TTM (Trailing-Twelve-Months) data shows negative EBIT and net income margins, indicating operating losses. Revenue growth has been inconsistent, with a decline from the previous year, and gross profit margin is modest. These factors contribute to a lower score, despite some historical profitability.
Balance Sheet
60
Neutral
The balance sheet indicates moderate financial stability with a relatively low debt-to-equity ratio. The equity ratio is strong, suggesting a healthy proportion of assets funded by equity. However, the return on equity is low due to negative net income, which affects the overall score. The company has maintained a solid asset base, which is a positive aspect.
Cash Flow
55
Neutral
Cash flow analysis shows a positive operating cash flow, which is a strong point. However, free cash flow growth has been negative, indicating potential issues in generating cash after capital expenditures. The ratios of cash flow to net income are affected by the negative net income, impacting the score. Overall, cash flow management appears stable but challenged by underlying profitability issues.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.40B1.44B1.63B1.28B874.51M789.23M
Gross Profit148.92M167.04M317.71M268.77M78.87M51.66M
EBITDA29.55M50.30M301.70M137.10M65.55M21.17M
Net Income-148.19M-137.86M85.63M2.03M-54.19M-107.02M
Balance Sheet
Total Assets1.25B1.22B1.48B1.34B1.06B1.05B
Cash, Cash Equivalents and Short-Term Investments71.42M58.29M41.10M99.14M111.92M68.77M
Total Debt172.17M175.42M148.58M33.16M466.00K799.00K
Total Liabilities419.71M407.37M481.92M381.75M234.93M179.97M
Stockholders Equity826.49M816.27M998.39M954.03M826.30M870.77M
Cash Flow
Free Cash Flow85.54M112.00M3.87M-19.25M11.19M38.52M
Operating Cash Flow232.16M252.29M374.74M300.43M154.71M139.12M
Investing Cash Flow-154.09M-155.10M-384.13M-349.75M-104.29M-94.22M
Financing Cash Flow-61.14M-80.11M-46.12M26.26M-7.28M-125.17M

Propetro Holding Technical Analysis

Technical Analysis Sentiment
Negative
Last Price4.78
Price Trends
50DMA
5.51
Negative
100DMA
5.58
Negative
200DMA
7.03
Negative
Market Momentum
MACD
-0.15
Negative
RSI
41.82
Neutral
STOCH
73.25
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PUMP, the sentiment is Negative. The current price of 4.78 is below the 20-day moving average (MA) of 4.83, below the 50-day MA of 5.51, and below the 200-day MA of 7.03, indicating a bearish trend. The MACD of -0.15 indicates Negative momentum. The RSI at 41.82 is Neutral, neither overbought nor oversold. The STOCH value of 73.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PUMP.

Propetro Holding Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$96.82M9.2512.76%19.15%-71.62%
77
Outperform
$902.80M12.388.17%
74
Outperform
$332.00M18.597.00%0.38%14.77%34.74%
65
Neutral
$15.47B7.313.20%5.32%4.22%-60.66%
64
Neutral
$1.79B8.4810.92%3.07%-9.32%-48.26%
53
Neutral
$335.68M48.170.95%-12.15%
48
Neutral
$520.88M-16.86%-10.91%-580.59%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PUMP
Propetro Holding
4.78
-2.59
-35.14%
NGS
Natural Gas Services Group
26.24
7.07
36.88%
OIS
Oil States International
5.41
0.59
12.24%
NCSM
Ncs Multistage Holdings
42.48
21.31
100.66%
LBRT
Liberty Oilfield Services
10.41
-8.52
-45.01%
NESR
National Energy Services Reunited
9.36
-0.14
-1.47%

Propetro Holding Corporate Events

Executive/Board Changes
ProPetro Holding Appoints New Chief Financial Officer
Positive
Jul 14, 2025

On July 14, 2025, ProPetro Holding Corp. announced the appointment of Caleb L. Weatherl as Chief Financial Officer, effective immediately. Mr. Weatherl brings extensive experience from his previous roles in the energy and financial sectors, including positions at Garrison Energy and Stronghold Energy II. His appointment is expected to strengthen ProPetro’s operational and financial foundation, aligning with the company’s long-term vision and focus on driving shareholder value.

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
ProPetro Holding Stockholders Approve Key Governance Decisions
Positive
May 27, 2025

On April 7, 2025, ProPetro Holding Corp.’s Board of Directors approved the Second Amended and Restated 2020 Long Term Incentive Plan, subject to stockholder approval. At the company’s Annual Meeting on May 20, 2025, stockholders elected nine directors, approved executive compensation practices, and ratified RSM US LLP as the independent auditor for 2025. These decisions reflect ProPetro’s commitment to governance and strategic alignment with shareholder interests, potentially strengthening its market position and operational focus.

Product-Related AnnouncementsBusiness Operations and Strategy
ProPetro’s PROPWR Secures Decade-Long Power Generation Deal
Positive
May 20, 2025

On May 20, 2025, ProPetro Holding Corp. announced that its subsidiary, PROPWR, secured a ten-year contract to provide 80 megawatts of power generation services. This inaugural agreement marks a significant milestone for PROPWR, aligning with its mission to ‘Rethink The Grid’ by delivering turnkey power to a distributed microgrid installation. The contract underscores PROPWR’s commitment to innovation and growth, providing reliable, lower-cost, and lower-emission power, which enhances stability and earnings potential for ProPetro and the broader oilfield services sector.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 19, 2025