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Propetro Holding (PUMP)
NYSE:PUMP
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Propetro Holding
(NYSE:PUMP)
53Neutral
Positive Factors
Business Expansion
The company is aggressively building out its Power Solutions business, which is expected to contribute significantly to future earnings.
Market Demand
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
Supply-Demand 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. S&P 500 (SPY)
Market Cap
$515.81M
Dividend YieldN/A
Average Volume (3M)1.83M
Price to Earnings (P/E)―
Beta (1Y)1.17
Revenue Growth-13.32%
EPS Growth-309.35%
CountryUS
Employees1,900
SectorEnergy
Sector Strength47
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)-0.17
Shares Outstanding103,784,240
10 Day Avg. Volume1,803,661
30 Day Avg. Volume1,825,359
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 Cap2.09
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit1.67
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$9.67Price Target Upside80.41% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
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 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
5.36
Price Trends
6.66
Negative
8.03
Negative
8.04
Negative
Market Momentum
-0.42
Negative
44.13
Neutral
37.37
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 5.36 is above the 20-day moving average (MA) of 5.25, below the 50-day MA of 6.66, and below the 200-day MA of 8.04, indicating a neutral trend. The MACD of -0.42 indicates Negative momentum. The RSI at 44.13 is Neutral, neither overbought nor oversold. The STOCH value of 37.37 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 (56)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $258.05M | 13.10 | 7.41% | 1.89% | -7.56% | 30.51% | |
61 Neutral | $304.51M | 2.82 | 55.55% | ― | -4.08% | 429.70% | |
56 Neutral | $6.92B | 3.31 | -4.49% | 6.03% | -0.35% | -47.83% | |
53 Neutral | $515.81M | ― | -16.24% | ― | -13.32% | -309.35% | |
53 Neutral | $2.26B | ― | -24.93% | 5.67% | 5.82% | -481.39% | |
44 Neutral | $735.22M | ― | -18.38% | ― | -16.51% | -208.49% | |
43 Neutral | $429.14M | ― | -44.38% | ― | -0.94% | -19.18% |
* Energy Sector Average
Performance Comparison
PUMP
Propetro Holding
5.36
-3.93
-42.30%
NBR
Nabors Industries
27.34
-46.89
-63.17%
PTEN
Patterson-UTI
5.86
-4.45
-43.16%
TTI
Tetra Technologies
2.65
-1.30
-32.91%
RNGR
Ranger Energy Services
11.47
1.59
16.09%
ACDC
ProFrac Holding
4.59
-2.37
-34.05%
Propetro Holding Earnings Call Summary
Earnings Call Date:Apr 29, 2025
(Q1-2025)
| % Change Since: 1.71%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong financial performance in Q1 2025, with notable achievements in revenue growth, EBITDA, and free cash flow generation. The expansion of the Pro Power offering and successful cost optimizations are positive indicators. However, market uncertainties due to external factors and a reduction in fleet operations present notable challenges. Despite these challenges, the company maintains a positive outlook based on its strategic initiatives and strong balance sheet.Q1-2025 Updates
Positive Updates
Increase in Total Revenue
ProPetro generated total revenue of $359 million in Q1 2025, which is an increase of 12% compared to the prior quarter.
Positive Net Income
The company reported a net income of $10 million or $0.09 per diluted share, compared to a net loss of $17 million or $0.17 per diluted share in Q4 2024.
Strong Adjusted EBITDA
Adjusted EBITDA totaled $73 million, which was 20% of revenue and an increase of 38% compared to the prior quarter.
Significant Free Cash Flow Generation
ProPetro generated free cash flow of $22 million, supported by strong operational performance and lower capital expenditures.
Expansion of Pro Power Offering
The company secured letters of intent for approximately 75 megawatts of long-term Pro Power service capacity with two separate operators, with full delivery expected by midyear 2026.
Successful Cost Optimization Efforts
A 9% reduction in full-year 2025 CapEx guidance was announced, attributed to successful cost optimization efforts and disciplined asset management.
Negative Updates
Market Uncertainty Due to Tariffs and OPEC+ Production Increases
The recent decline in oil prices influenced by tariffs and OPEC+ production increases has created uncertainty and pressure on the energy market.
Reduction in Fleet Operations
ProPetro anticipates a reduction in operating fleets from 14-15 in Q1 to approximately 13-14 in Q2, reflecting market volatility and pricing pressures.
Net Loss on Disposal of Assets
There was a net loss of $10 million related to the disposal of certain Tier 2 hydraulic equipment.
Company Guidance
In the first quarter of 2025, ProPetro Holding Corp. demonstrated strong financial and operational performance, highlighted by a 12% increase in total revenue to $359 million compared to the previous quarter. The company generated a net income of $10 million or $0.09 per diluted share, a significant turnaround from the previous quarter's net loss of $17 million. Adjusted EBITDA increased by 38% to $73 million, representing 20% of the revenue. The company also reported strong free cash flow of $22 million and capital expenditures of $39 million, primarily for maintenance and initial Pro Power orders. ProPetro's emphasis on transitioning to Tier 4 DGB dual fuel and electric offerings, which now comprise 75% of their fleet, has secured long-term contracts for 50% of their active hydraulic horsepower. Looking ahead, ProPetro plans to operate 13 to 14 fleets in the second quarter, down from 14 to 15 in the first quarter, and has adjusted its full-year 2025 capital expenditure guidance to between $295 million and $345 million, reflecting a 9% reduction at the midpoint. This strategic focus on capital-efficient asset investments is aimed at generating resilient free cash flow and delivering durable returns amidst market uncertainties.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.