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Propetro Holding (PUMP)
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Propetro Holding (PUMP) AI Stock Analysis

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PUMP

Propetro Holding

(NYSE:PUMP)

Rating:49Neutral
Price Target:
$5.50
▲(4.76% Upside)
ProPetro Holding faces significant profitability challenges and negative valuation metrics, heavily impacting the score. Technical indicators show a bearish trend. However, strategic investments in next-gen services and a strong balance sheet provide some optimism. Earnings call insights suggest resilience amid market difficulties, but financial performance remains a key concern.
Positive Factors
Business Expansion
The company is aggressively building out its Power Solutions business, which is expected to contribute significantly to future earnings.
Demand and Utilization
Management expects steady Permian Basin frac activity, with high utilization and demand for Tier IV dual-fuel and electric fleets.
Strategic Investments
ProPetro is strategically prioritizing investments in electric frac fleets and pursuing accretive mergers and acquisitions.
Negative Factors
Market Imbalance
The formation of PROPWR allows the company to capitalize on the supply-demand imbalance for natural gas power generation solutions.

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 Holding makes money primarily through its hydraulic fracturing services, which are critical for extracting oil and gas from shale formations. The company charges its clients, which are typically exploration and production companies, for the use of its equipment, skilled personnel, and technology needed to perform these services. Revenue is generated based on the number of jobs completed, the size of the fracturing operations, and the duration of service contracts. Additionally, ProPetro may engage in partnerships and agreements with major oil and gas firms to secure long-term service contracts, providing a steady stream of income. Key factors contributing to its earnings include the demand for oil and gas, the level of drilling activity in the Permian Basin, and the company's ability to efficiently manage its operations and costs.

Propetro Holding Earnings Call Summary

Earnings Call Date:Jul 30, 2025
(Q2-2025)
|
% Change Since: -17.19%|
Next Earnings Date:Nov 04, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced view of ProPetro's current situation. While the company faces significant challenges due to market conditions in the Permian Basin, it has shown resilience through strategic investments in next-generation services and the PROPWR initiative. The introduction of a new CFO and strong demand for electric fleets are positive, but decreased revenue and market challenges weigh heavily.
Q2-2025 Updates
Positive Updates
Introduction of New CFO
Caleb Weatherl joins ProPetro as the new Chief Financial Officer, bringing extensive experience in the energy and financial sectors.
Strong Demand for Next-Generation Services
Approximately 75% of ProPetro's fleet is next-generation between Tier IV DGB dual-fuel and FORCE electric fleets, with over 50% of active hydraulic horsepower under long-term contracts.
PROPWR Growth and Inaugural Contract
ProPetro announced its first contract for 80 megawatts of power generation capacity with a Permian-focused E&P operator, marking a significant step in their PROPWR initiative.
Capital Allocation Strategy
ProPetro continues to prioritize capital discipline, focusing on PROPWR and FORCE electric fleet growth, while maintaining a strong balance sheet.
Negative Updates
Decreased Revenue and Net Loss
Q2 2025 total revenue decreased by 9% to $326 million compared to the prior quarter. Net loss totaled $7 million, with an adjusted EBITDA decrease of 32%.
Market Challenges in the Permian Basin
The Permian frac fleet count decreased, leading to increased market uncertainty and idle capacity, affecting operational activity.
Reduced Activity Outlook
ProPetro expects to operate fewer fleets in Q3 and possibly even fewer in Q4 due to ongoing market uncertainty.
Company Guidance
During the ProPetro Holding Corp. Second Quarter 2025 Conference Call, the company provided several key metrics and insights into its performance and strategic direction. ProPetro reported total revenue of $326 million for the quarter, representing a 9% decrease from the prior quarter. The company experienced a net loss of $7 million, or $0.07 per diluted share, compared to a net income of $10 million, or $0.09 per diluted share, in the first quarter of 2025. Adjusted EBITDA was $50 million, comprising 15% of revenue, and decreased by 32% quarter-over-quarter. ProPetro's capital expenditures incurred were $73 million, with $30 million allocated to maintenance in its completions business and $43 million for PROPWR orders. The company maintained a strong balance sheet with $75 million in cash and $178 million in total liquidity. ProPetro plans to operate an average of 10 to 11 fleets in the third quarter, down from 13 to 14 fleets in the second quarter, due to macroeconomic uncertainties and strategic decisions to idle certain fleets. Despite challenges, ProPetro remains optimistic about its next-generation services, with 75% of its fleet being next generation and over 50% of its active hydraulic horsepower under long-term contracts. The company also highlighted the successful launch of its PROPWR initiative, with 220 megawatts of power generation capacity on order, and anticipates securing long-term agreements for all ordered equipment by the end of 2025.

Propetro Holding Financial Statement Overview

Summary
Propetro Holding's financial performance faces challenges with profitability and inconsistent revenue growth. The balance sheet shows stability with low leverage, but negative net income affects return on equity. Cash flow is positive but impacted by negative net income.
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 Price5.25
Price Trends
50DMA
5.98
Negative
100DMA
5.98
Negative
200DMA
7.31
Negative
Market Momentum
MACD
-0.22
Positive
RSI
39.59
Neutral
STOCH
16.07
Positive
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 5.25 is below the 20-day moving average (MA) of 5.86, below the 50-day MA of 5.98, and below the 200-day MA of 7.31, indicating a bearish trend. The MACD of -0.22 indicates Positive momentum. The RSI at 39.59 is Neutral, neither overbought nor oversold. The STOCH value of 16.07 is Positive, 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 (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$644.31M8.221.53%
78
Outperform
$80.88M6.5112.76%19.15%-71.62%
76
Outperform
$304.60M17.966.77%22.64%78.46%
75
Outperform
$1.90B8.9910.92%2.67%-9.32%-48.26%
56
Neutral
C$4.11B-0.170.41%6.51%5.45%-66.94%
54
Neutral
$307.81M44.520.95%-12.15%
49
Neutral
$545.83M-16.86%-10.91%-580.59%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PUMP
Propetro Holding
4.91
-3.34
-40.48%
NGS
Natural Gas Services Group
24.31
4.91
25.31%
OIS
Oil States International
5.08
0.17
3.46%
NCSM
Ncs Multistage Holdings
29.51
11.31
62.14%
LBRT
Liberty Oilfield Services
11.71
-8.39
-41.74%
NESR
National Energy Services Reunited
6.68
-1.82
-21.41%

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.

The most recent analyst rating on (PUMP) stock is a Hold with a $10.00 price target. To see the full list of analyst forecasts on Propetro Holding stock, see the PUMP Stock Forecast page.

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.

The most recent analyst rating on (PUMP) stock is a Hold with a $10.00 price target. To see the full list of analyst forecasts on Propetro Holding stock, see the PUMP Stock Forecast page.

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.

The most recent analyst rating on (PUMP) stock is a Hold with a $10.00 price target. To see the full list of analyst forecasts on Propetro Holding stock, see the PUMP Stock Forecast page.

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: Jul 31, 2025