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

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Propetro Holding

(NYSE:PUMP)

Rating:60Neutral
Price Target:
$6.50
▲(13.44%Upside)
Propetro Holding's overall score is driven by a strong earnings call performance and positive corporate events. However, financial performance and valuation remain significant hindrances due to profitability challenges and a negative P/E ratio. Technical analysis shows mixed momentum, contributing to a cautious outlook.
Positive Factors
Business Expansion
The company is aggressively building out its Power Solutions business, which is expected to contribute significantly to future earnings.
Capacity Increase
The company has announced the purchase of additional power generation equipment, increasing capacity and inferring a potential annualized EBITDA increase.
Strategic Investments
ProPetro is strategically prioritizing investments in electric frac fleets and pursuing accretive mergers and acquisitions.
Negative Factors
Market Competition
The formation of PROPWR allows the company to capitalize on the supply-demand imbalance for natural gas power generation solutions.
Market Demand
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. (PUMP) is a leading oilfield services company that primarily operates in the Permian Basin, which is one of the most prolific oil-producing regions in the United States. The company specializes in providing hydraulic fracturing and other complementary services to upstream oil and gas companies, enabling them to enhance the production of hydrocarbons from their reservoirs.
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:Apr 29, 2025
(Q1-2025)
|
% Change Since: 8.73%|
Next Earnings Date:Jul 30, 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 Financial Statement Overview

Summary
Propetro Holding faces significant challenges in profitability, indicated by negative EBIT and net income margins. Despite a stable balance sheet with low leverage, the negative net income affects return on equity. Cash flow is stable 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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.44B1.63B1.28B874.51M789.23M
Gross Profit167.04M317.71M268.77M78.87M51.66M
EBITDA50.30M301.70M293.58M65.55M21.17M
Net Income-137.86M85.63M2.03M-54.19M-107.02M
Balance Sheet
Total Assets1.22B1.48B1.34B1.06B1.05B
Cash, Cash Equivalents and Short-Term Investments58.29M41.10M99.14M111.92M68.77M
Total Debt175.42M148.58M33.16M466.00K799.00K
Total Liabilities407.37M481.92M381.75M234.93M179.97M
Stockholders Equity816.27M998.39M954.03M826.30M870.77M
Cash Flow
Free Cash Flow112.00M3.87M-19.25M11.19M38.52M
Operating Cash Flow252.29M374.74M300.43M154.71M139.12M
Investing Cash Flow-155.10M-384.13M-349.75M-104.29M-94.22M
Financing Cash Flow-80.11M-46.12M26.26M-7.28M-125.17M

Propetro Holding Technical Analysis

Technical Analysis Sentiment
Negative
Last Price5.73
Price Trends
50DMA
5.98
Negative
100DMA
6.24
Negative
200DMA
7.47
Negative
Market Momentum
MACD
-0.01
Positive
RSI
41.60
Neutral
STOCH
8.87
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 5.73 is below the 20-day moving average (MA) of 6.22, below the 50-day MA of 5.98, and below the 200-day MA of 7.47, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 41.60 is Neutral, neither overbought nor oversold. The STOCH value of 8.87 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 (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$253.78M13.237.41%2.13%-7.56%30.51%
TTTTI
65
Neutral
$429.83M3.9855.55%-4.08%429.70%
60
Neutral
$597.48M-16.24%-13.32%-309.35%
57
Neutral
$1.26B-20.15%-6.13%-76.84%
56
Neutral
$2.29B-24.93%5.41%5.82%-481.39%
52
Neutral
C$2.94B-1.05-3.46%5.87%3.01%-47.13%
NBNBR
50
Neutral
$484.33M-44.00%-0.94%-19.18%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PUMP
Propetro Holding
5.79
-2.99
-34.05%
NBR
Nabors Industries
31.59
-53.55
-62.90%
PTEN
Patterson-UTI
6.03
-4.23
-41.23%
TTI
Tetra Technologies
3.34
-0.36
-9.73%
RNGR
Ranger Energy Services
11.59
0.65
5.94%
ACDC
ProFrac Holding
8.09
-0.07
-0.86%

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 15, 2025