PUMP

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at ProPetro (NYSE:PUMP) and the best and worst performers in the oilfield services industry. Oilfield services companies provide equipment, technology, and services enabling exploration and production activities, including drilling, completion, well intervention, and reservoir evaluation. Their fortunes closely track upstream capital spending cycles. Tailwinds include increased drilling activity during favorable commodity environments, demand for efficiency-enhancing technologies, and growing offshore and unconventional resource development. Headwinds include significant revenue volatility tied to oil and gas price swings and producer spending discipline. Intense competition pressures pricing and margins, while the energy transition may structurally reduce long-term demand. Workforce availability and technological disruption require continuous adaptation. The 25 oilfield services stocks we track reported a very strong Q2. As a group, revenues beat analysts’ consensus estimates by 4.7%. Luckily, oilfield services stocks have performed well with share prices up 14.6% on average since the latest earnings results. Operating exclusively in the Permian Basin—one of America's most prolific oil-producing regions—ProPetro (NYSE:PUMP) provides hydraulic fracturing services that pump high-pressure fluid and sand into oil wells to release trapped hydrocarbons. ProPetro reported revenues of $305.8 million, down 6.2% year on year. This print fell short of analysts’ expectations by 1.6%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS estimates. Sam Sledge, Chief Executive Officer, commented, “ProPetro’s second quarter results once again demonstrate the strength of our business model. While our results were negatively impacted by a few items during the quarter, including upfront costs associated with standing up our twelfth fleet, a temporary out-of-basin fleet deployment that experienced significant unexpected downtime, and severe weather interrupting our operations across the Permian Basin in June, the underlying performance of the business remained strong. Even with these impacts, our completions business generated resilient free cash flow, a clear demonstration that the industrialized model we have built is working. Interestingly, the stock is up 10% since reporting and currently trades at $11.73. Read our full report on ProPetro here, it’s free. Managing over 24 billion barrels of produced water annually across major U.S. shale plays, Select Water Solutions (NYSE:WTTR) provides water sourcing, recycling, disposal, and treatment services for oil and gas producers. Select Water Solutions reported revenues of $395.8 million, up 8.7% year on year, outperforming analysts’ expectations by 5.7%. The business had an incredible quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates. The market seems happy with the results as the stock is up 8.7% since reporting. It currently trades at $20.11. Is now the time to buy Select Water Solutions? Access our full analysis of the earnings results here, it’s free. Operating one of the world's youngest jack-up fleets with an average age under eight years, Borr Drilling (NYSE:BORR) operates jack-up rigs that drill oil and gas wells in shallow waters up to 400 feet deep for exploration and production companies. Borr Drilling reported revenues of $232.3 million, down 13.2% year on year, falling short of analysts’ expectations by 6.2%. It was a softer quarter, leaving some shareholders looking for more. Borr Drilling delivered the weakest performance against analyst estimates of the whole group. Interestingly, the stock is up 14.6% since the results and currently trades at $4.88. Read our full analysis of Borr Drilling’s results here. Operating what's essentially an airborne taxi service for some of the world's most remote workplaces, Bristow Group (NYSE:VTOL) operates helicopters that transport workers to offshore oil and gas platforms and conduct search and rescue operations. Bristow Group reported revenues of $411.8 million, up 9.4% year on year. This number topped analysts’ expectations by 0.9%. Aside from that, it was a satisfactory quarter as it also logged full-year revenue guidance exceeding analysts’ expectations but a significant miss of analysts’ EPS estimates. The stock is down 5.2% since reporting and currently trades at $45.24. Read our full, actionable report on Bristow Group here, it’s free. Operating the largest fleet of super-spec rigs in North America with technology that can drill horizontal wells over two miles long, Helmerich & Payne (NYSE:HP) provides drilling rigs and crews to oil and gas companies that need wells drilled to extract hydrocarbons from underground. Helmerich & Payne reported revenues of $1.03 billion, flat year on year. This result beat analysts’ expectations by 5.4%. It was a strong quarter as it also recorded an impressive beat of analysts’ EBITDA estimates. The stock is up 40.9% since reporting and currently trades at $46.90. Read our full, actionable report on Helmerich & Payne here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

A month has gone by since the last earnings report for ProPetro Holding (PUMP). Shares have added about 3.3% in that time frame, underperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is ProPetro due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for ProPetro Holding Corp. before we dive into how investors and analysts have reacted as of late. ProPetro Holding reported a second-quarter 2026 loss of 7 cents per share, wider than the Zacks Consensus Estimate of a loss of 1 cent. This was due to higher fleet activation costs, unexpected downtime on an out-of-basin project, severe weather in the Permian Basin during June and increased operating expenses, which weighed on earnings. The bottom line was unchanged from the year-ago quarter’s loss of 7 cents. Revenues of $306 million beat the Zacks consensus estimate of $301 million by 1.8%, primarily due to higher-than-expected Power Generation, Hydraulic Fracturing and Cementing segment revenues, which beat consensus estimates by 97%, 0.5% and 10%, respectively. However, the metric declined 6.2% year over year from $326.2 million in the prior-year quarter, primarily due to lower Wireline revenues, which missed the consensus estimate by 4.9%. Adjusted EBITDA totaled $44.8 million, up 23% from $36.4 million in the prior quarter. The metric represented roughly 15% of revenues and included $15.8 million of operating lease expense related to the company’s FORCE electric fleets. However, the metric missed our estimate of $46.2 million. ProPetro conducts its operations through four reporting segments: Hydraulic Fracturing, Wireline, Cementing and Power Generation. Total revenues increased 13% sequentially from $271 million, primarily due to higher completions utilization and incremental PROPWR deployments. Hydraulic fracturing revenues totaled $207.2 million, up 15.6% from $179.3 million in the prior quarter. However, the figure missed our estimate of $210.2 million. This segment accounted for approximately 68% of ProPetro’s consolidated second-quarter revenues. Adjusted EBITDA from hydraulic fracturing increased 19.3% sequentially to $44.2 million. However, performance was affected by upfront maintenance and deployment costs associated with activating the 12th fleet, significant downtime on a temporary out-of-basin customer project and severe Permian Basin weather in June. Wireline revenues totaled $57.5 million, down 6.9% from the previous quarter. However, the figure beat our estimate of $55.2 million.  Adjusted EBITDA from the segment declined 16.2% sequentially to $11.4 million. Management nevertheless described wireline utilization, pricing and margins as resilient. Cementing revenues increased 15.2% sequentially to $32 million. The figure beat our estimate of $30.5 million. Segment adjusted EBITDA surged to $5.5 million from $2.1 million, supported by improving activity and higher Permian Basin drilling levels. Power generation revenues rose to $9.3 million from $2.2 million in the prior quarter. The figure beat our estimate of $1.1 million. The segment’s adjusted EBITDA loss narrowed to $0.7 million from $5.3 million. PROPWR also generated positive EBITDA during the quarter’s final two months. Total costs and expenses were $309 million for the second quarter, which was down 6.2% from the prior-year quarter’s level.Cost of services, excluding depreciation and amortization, totaled $234 million. General and administrative expenses increased to $33.1 million from $27.2 million sequentially, primarily due to costs associated with PROPWR’s growth and financing activities. Depreciation and amortization rose to $43.5 million from $40.6 million in the prior quarter. The company reported a net loss of $8.1 million compared with a loss of $3.6 million in the first quarter. Net cash provided by operating activities increased to $66 million from $3 million. The improvement reflected higher adjusted EBITDA and approximately $20 million of working-capital tailwinds. Free cash flow from the completions business totaled $51.1 million. As of June 30, 2026, ProPetro had $784 million in cash and cash equivalents, including proceeds from its $690 million convertible senior notes offering. Total liquidity was $905 million, including $121 million of available borrowing capacity under the ABL Credit Facility. Long-term debt amounted to $764.9 million. The total debt-to-total capital was 44.4%. Capital expenditures paid were $61 million, while incurred capital expenditures totaled $71 million. Approximately $24 million supported completions, while $47 million funded PROPWR equipment orders. In the past month, investors have witnessed a downward trend in estimates review. The consensus estimate has shifted -115% due to these changes. Currently, ProPetro has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for value investors. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, ProPetro has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. ProPetro is part of the Zacks Oil and Gas - Field Services industry. Over the past month, Halliburton (HAL), a stock from the same industry, has gained 12.2%. The company reported its results for the quarter ended June 2026 more than a month ago. Halliburton reported revenues of $5.71 billion in the last reported quarter, representing a year-over-year change of +3.7%. EPS of $0.55 for the same period compares with $0.55 a year ago. For the current quarter, Halliburton is expected to post earnings of $0.58 per share, indicating no change from the year-ago quarter. The Zacks Consensus Estimate has changed -0.4% over the last 30 days. Halliburton has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ProPetro Holding Corp. (PUMP) : Free Stock Analysis Report Halliburton Company (HAL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Wednesday, July 29, 2026 at 8:00 a.m. ET Vice President of Finance and Investor Relations - Matt Augustine Chief Executive Officer - Sam Sledge Chief Financial Officer - Caleb Weatherl President and Chief Operating Officer - Adam Munoz President of PROPWR - Travis Simmering Operator: Good day, and welcome to the ProPetro Holding Corp. Second Quarter of 2026 Conference Call. Please note that this event is being recorded. I would now like to turn the call over to Matt Augustine, ProPetro's Vice President of Finance and Investor Relations. Please go ahead. Matt Augustine: Thank you, and good morning. We appreciate your participation in today's call. With me are Chief Executive Officer, Sam Sledge; Chief Financial Officer, Caleb Weatherl; President and Chief Operating Officer, Adam Munoz; and President of PROPWR, Travis Simmering. This morning we released our earnings results for the second quarter of 2026. Please note that any comments we make on today's call regarding projections or our expectations for future events are forward-looking statements covered by the Private Securities Litigation Reform Act. Forward-looking statements are subject to several risks and uncertainties, many of which are beyond our control. These risks and uncertainties can cause actual results to differ materially from our current expectations. We advise listeners to review our earnings release and risk factors discussed in our filings with the SEC. Also during today's call, we will reference certain non-GAAP financial measures. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are included in our earnings release. Finally, after our prepared remarks, we will hold a question and answer session. With that, I would like to turn the call over to Sam. Sam Sledge: Thanks, Matt, and good morning, everyone. Our second quarter 2026 financial results once again demonstrated the strength of our business model. While our reported results were negatively impacted by a few items during the quarter, the underlying performance of the business remains strong, giving us confidence as we move through the third quarter. Our completions business generated resilient free cash flow again in the second quarter, which we believe is one of the clearest demonstrations that the industrialized model we've built is working. Our disciplined approach to capital deployment, operational efficiency, and cost management, paired with strategic actions we've taken over the past several years to optimize our asset base, continue to produce attractive cash flow and positions us well as the market conditions improve. We will continue leveraging the industrialized nature of our completions business to support the expansion of PROPWR while maintaining disciplined capital allocation across the enterprise. Now, let me quickly touch on some of the headwinds that impacted the quarter. During the second quarter, we increased our active fleet count from 11 to 12. As we've discussed previously, standing up a new fleet requires upfront maintenance and deployment costs before the full earnings benefit is realized. We also temporarily deployed an existing fleet outside of the Permian to support a limited-scope frac program for a long-standing customer. The program experienced significant unexpected downtime before the fleet recently returned to the Permian Basin. That work, together with severe weather across the Permian in June, created unexpected operational disruptions across a portion of our fleet and impacted our quarterly financial results. As we look into the third quarter and beyond, we're encouraged by what we are seeing from both our customers and the broader market. This is reinforced by increased drilling activity, with the Permian Basin rig count at nearly 10% off of its first quarter low, according to Baker Hughes, a leading indicator that supports the strength we're seeing across the market. That confidence is also reflected in our decision to activate a 13th fleet, which we expect to begin contributing toward the end of the third quarter. We remain disciplined throughout this cycle, and our capital allocation philosophy hasn't changed. We will only deploy additional horsepower when we see durable customer demand in an economic environment in which we can generate attractive long-term returns on our investments. Turning to the broader market environment, we acknowledge the significant macroeconomic uncertainty given the ongoing conflict in the Middle East. That said, these recent events have emphasized something that was already taking place across the North American completions market, even before the Iran war started. We've talked for several quarters about how market cycles create opportunity for disciplined operators. And after several years of depressed returns, many smaller and less disciplined competitors were unable to sustain their operations through a prolonged downturn. As a result, the industry has consolidated through attrition, and much of the excess frac capacity that once weighed on the market has largely disappeared. As activity has stabilized, customers are increasingly recognizing just how many frac fleets have exited the market, and that's leading to increasingly constructive conversations around demand and pricing. While it's still too soon to know the full implications that the conflict in the Middle East will ultimately have on the global energy markets, early observations appear positive for our business. The floor appears to have risen for commodity prices, and that's translating into a more constructive operating environment. As a result, we're beginning to see positive pricing momentum across our completions business, particularly for our next-generation natural gas-burning fleets, where demand remains exceptionally strong given today's diesel versus natural gas prices. Industry-wide, next-generation natural gas-burning fleets are effectively sold out, while available Tier 2 diesel equipment has also become increasingly limited. Today, the majority of our active frac horsepower is contracted, with most of these contracts scheduled to renew over the next 6 to 9 months. Because a significant portion of that contracted horsepower consists of natural gas-burning equipment, we're optimistic about the pricing and re-contracting opportunities as the market fundamentals continue to move in our favor. We're also seeing improving economics for our diesel fleets as the overall market tightens. Finally, we still estimate that the Permian Basin is currently operating at roughly a mid-70s frac fleet count. Importantly, we believe it would be very challenging to see the active fleet count return above the mid-80s without meaningful reinvestment and growth rather than replacement capacity. At this time, we do not expect that growth reinvestment to materialize. In our view, the industry is structurally tighter than many appreciate. The barriers to adding meaningful new supply remain high, and we expect that environment to persist. Now moving to PROPWR. We've continued to make meaningful progress across the business since our last update, both commercially and operationally. Most notably, we've increased our contracted power generation capacity since our last earnings call, growing from approximately 240 megawatts to 350 megawatts committed under contract today. We believe that's a significant milestone and further validates both the demand environment and the commercial momentum we're seeing across the business. Those incremental awards include approximately 110 megawatts of power generation capacity committed under contract across 2 separate projects, one supporting a leading integrated upstream operator in the Permian Basin and another supporting a separate industrial customer. We're also engaged in advanced contract negotiations for an additional over 100 megawatts to support other oil and gas operations. These awards validate that demand for reliable, lower-emission power solutions extends well beyond data centers. We're seeing meaningful opportunities across the oil and gas industrial markets as well. Importantly, while contract terms on these agreements are generally a little shorter in duration than those PROPWR is pursuing in the data center arena, the pricing and expected annual returns are highly attractive and accretive to the overall return profile of the PROPWR business as it continues to scale. That being said, we still continue to expect the majority of our future power capacity to be deployed within the data center market. As a reminder, a significant portion of our strategic framework agreement with Caterpillar includes highly efficient, stationary, large natural gas engines purpose-built for data center and similar high-density applications, a meaningful differentiator that supports our commercial and operational advantages in this market. Importantly, we have PROPWR assets currently deployed and operating live on a data center project and meeting all performance obligations, making us one of the few behind-the-meter power providers currently operating in this market, providing prime power to a data center at scale. That's a meaningful milestone that reinforces what we've been saying for several quarters. We're executing in the field, not just talking about opportunities. Having assets successfully operating in the field strengthens our commercial position and provides customers with tangible examples of our execution capabilities as we continue pursuing additional opportunities. This operational progress is already translating into financial results. PROPWR generated positive EBITDA in each of the final 2 months of the quarter, a notable achievement this early in the company's life. This is an exciting milestone as we scale deployments across multiple sites through the end of the year and into next year. Accordingly, we've also continued to make meaningful progress across our data center commercial pipeline, which includes a subset of several hundred megawatts currently in advanced negotiations. We also want to acknowledge that some of our discussions with data center developers and operators are taking longer than we originally anticipated. And frankly, it's not surprising now knowing the given size and duration of these agreements. These are generally very long-term commitments involving significant capital on both sides. So both the customers and ProPetro are spending considerable time evaluating contract structures, project timing, and risk allocation, but demand has not waned. Interestingly, the strong demand we're seeing for assets can actually lengthen the contracting process because we're focused on matching available capacity with the right long-term customers rather than simply signing the next available agreement. As project timing evolves across multiple opportunities, available capacity then shifts as well, creating new opportunities in some cases while extending timelines in others. Well, we will remain disciplined throughout this process, prioritizing real, actionable opportunities and agreements, whether they're shovel-ready or already have shovels in the ground that create the most long-term value for our shareholders. That said, we continue to see near-term momentum across our pipeline, including the contracts announced this quarter, and expect that momentum to continue through 2026. As we deploy capital to grow PROPWR, we're proud of the work we've done to position ProPetro's capital structure to support that growth. From a financing perspective, we've now raised approximately $1.5 billion over the past 18 months to help fund PROPWR's growth, including our highly successful offering of $690 million aggregate principal amount of convertible notes completed in May, which resulted in 0% coupon notes with no dilution for shareholders until the stock price reaches $29.49 per share after taking the effect of the associated capped call transaction into account. Going forward, we'll approach future capital decisions opportunistically as we continue expanding our commercial footprint and executing against our strategy. Most importantly, we're excited to pair this capital with a well-defined plan to grow our asset base under our long-term Caterpillar Framework Agreement, giving us clear visibility into both costs and timeline of our equipment deliveries and deployments. We're extremely excited about the direction of the PROPWR business. The progress we've made commercially, operationally, and strategically continues to validate our long-term vision, and we look forward to sharing additional milestones soon. I'll wrap up now with a quick summary and then hand it off to Caleb. First, in the completions market, we like what we're seeing across our active frac fleets, and we're excited to activate our 13th fleet later this quarter. We have strong visibility through the remainder of 2026 for these fleets, and we're pleased with the improving fundamentals we're seeing across the market. On the other side of our business, PROPWR continues to build meaningful momentum as we focus on disciplined execution, successful deployments, and continued de-risking of our operation. We believe this approach is building a strong foundation to support sustainable, profitable, long-term growth. We continue to expect PROPWR to begin generating increasingly meaningful earnings during the second half of 2026 and into 2027 as deployments accelerate. Stepping back, the strategy we've been executing over the past several years continues to gain traction. Our completions business generates strong free cash flow and provides the financial foundation to help fund PROPWR's expansion. While PROPWR represents a differentiated growth platform well-positioned to capitalize on rapidly growing demand for reliable, low-emissions power solutions. Importantly, ProPetro is executing from a position of strength, pursuing value-enhancing growth opportunities backed by a demonstrated business model. We maintain a healthy balance sheet capable of funding PROPWR's continued expansion while preserving financial flexibility. At the same time, tailwinds are materializing across our completions business as supply tightens and demand for our distributed power solutions continue to accelerate. Despite the operational headwinds experienced in our completions business during the second quarter, we're encouraged by what we're seeing as we move into the back half of the year. With a first-class customer base, a first-class team, and a disciplined strategy that continues to deliver results, we believe ProPetro is exceptionally well-positioned to create meaningful long-term value for our shareholders. With that, I'll turn it over to Caleb. Caleb Weatherl: Thanks, Sam, and good morning, everyone. As Sam mentioned, we once again demonstrated the resiliency of our business in the second quarter. Despite a few operational headwinds, our completions business generated strong free cash flow. We continue to make meaningful progress across PROPWR. During the second quarter, ProPetro generated total revenue of $306 million, an increase of 13% compared to the prior quarter. Net loss totaled $8 million, or $0.07 loss per diluted share, compared to a net loss of $4 million, or $0.03 loss per diluted share in the prior quarter. Adjusted EBITDA totaled $45 million, representing 15% of revenue and increased 23% sequentially. This includes approximately $16 million of lease expense related to our electric fleets. As Sam discussed, quarterly results were impacted by a few items, including weather disruptions, fleet deployment costs, and a temporary customer project outside the Permian Basin with unexpected downtime. Net cash provided by operating activities was $66 million as compared to $3 million in the prior quarter. The increase is primarily attributable to higher adjusted EBITDA and working capital tailwinds in the second quarter, which were an approximately $20 million source of cash and working capital headwinds in the prior quarter, which consumed approximately $32 million in cash. During the second quarter, capital expenditures paid were $61 million, while capital expenditures incurred were $71 million, including approximately $24 million supporting our completions business and approximately $47 million supporting PROPWR equipment orders. As we've discussed over the past several quarters, the lower ongoing capital intensity of our completions business continues to be an important driver of the company's free cash flow generation and reflects the benefits of our fleet transition and industrialized operating model. Turning to our outlook, we now expect full year 2026 capital expenditures incurred to be between $525 million and $595 million, down from the $540 million to $610 million range, highlighted in our first quarter earnings report. Of this, the completions business is expected to account for approximately $125 million to $145 million, down from the prior $140 million to $160 million range. The reduction in expected completions capital expenditures is primarily attributable to the timing of our planned FORCE electric fleet buyouts. Prior guidance contemplated at least 2 fleet buyouts during 2026. We now expect to complete the first planned buyout this year at a cost of between $15 million and $20 million, with the second shifting into early 2027. This timing change does not alter our long-term capital allocation strategy or our intent to ultimately purchase all 5 FORCE electric fleets. Also, as a reminder, the completions business guidance range includes capital reserved for refurbishing a portion of the existing Tier 4 DGB fleet, investments in fleet automation technology, as well as measured investments in direct drive gas frac units. We continue to see strong customer demand for our next-generation gas-burning fleet portfolio and believe these investments further strengthen our long-term competitive position. Additionally, we anticipate incurring capital expenditures of approximately $400 million to $450 million for our PROPWR business in 2026, consistent with prior guidance. This guidance includes equipment deliveries as well as down payments associated with the strategic framework agreement with Caterpillar. Notably, the company's previous guidance of approximately $1.4 million to $1.5 million per megawatt inclusive of balance of plant, remains unchanged. While these PROPWR capital expenditure estimates reflect the total cost of equipment, they do not reflect the impact of financing arrangements, which have and are expected to continue reducing the near-term actual cash outflows required from ProPetro. Importantly, our balance sheet remains a significant source of strength. As of June 30, 2026, cash and cash equivalents were $784 million, including proceeds from the issuance of $690 million aggregate principal amount of convertible senior notes. Borrowings under our financing agreement with Caterpillar Financial Services Corporation were $130 million. This financing agreement was recently upsized to $167 million held by Caterpillar with any amounts they are able to syndicate to other lenders not counting against the $167 million cap. Total liquidity at the end of the second quarter of 2026 was $905 million, which included cash and cash equivalents and $121 million of available borrowing capacity under the ABL credit facility. We currently have no outstanding borrowings under the ABL credit facility. Finally, as Sam mentioned, we continue to approach PROPWR funding opportunistically, which gives us confidence in our ability to execute on future capital needs as we expand our commercial footprint and drive our strategy forward. Sam, back over to you. Sam Sledge: Thanks, Caleb. As we wrap up our prepared remarks, I want to reiterate a few points. Over the past several years, we've built ProPetro into a strong company that has continued to perform through challenging markets. Today, we're encouraged by the improving backdrop in our completions business, where a tighter supply environment, and early pricing momentum gives us confidence as we move into the second half of the year. At the same time, PROPWR continues to build momentum. We're making meaningful commercial and operational progress across data centers, oil and gas, and industrial markets, and we're excited to continue expanding our operating footprint through the back half of 2026 into 2027 and beyond. Most importantly, ProPetro is well-positioned with a healthy balance sheet, first-class customers, and above all, a first-class team. I'd like to thank all of our employees for their continued hard work and dedication. Their execution gives us confidence in our strategy and in our ability to continue creating long-term value for our shareholders. With that, operator, we'll now open the call for questions. Thank you. Operator: Your first question comes from Saurabh Pant of Bank of America. Saurabh Pant: Sam, Caleb, I think just given everything that has happened in the market over the last 1 week in this space, maybe I would like to start with getting perhaps a little more color on your liquidity position. I know you talked about that a little bit, but maybe touch on that and the financing agreements and then to the extent you can maybe give us a little bit more color on the cash needs for PROPWR over the next 12 months. I know you gave '26 guidance, which is helpful, but just a little beyond that. And then related to that, I know you got the Caterpillar Strategic Framework Agreement, which I'm sure gives you more certainty and some flexibility on the whole timing of equipment delivery and related cash progress payments, but maybe touch all of that a little bit and just give us some color on how you were thinking about matching your cash inflows and outflows. Sam Sledge: All right, a lot there. Great lead-off question. I'll try and kind of address a couple of things at a high level, Caleb will probably want to talk about CapEx liquidity, maybe some of the details. I think you're right. There's obviously been a lot of noise in the market here recently. Nothing's changed here. I think what we're trying to do today is to reiterate from an equipment and capital and outlook standpoint, especially as it pertains to PROPWR, very much of the same that we've said previously. I think we've done a pretty good job, and we're really happy with the strategy that -- communication strategy that we pursued almost a year ago to give really clear guidance and a really clear and transparent 5-year outlook around how this power business would grow and scale, how much the equipment would cost, how we're going to finance it, and what we think our returns are going to be. I think maybe we've been more transparent than anybody else in the space. I think a big part of that too is, procuring what we think is best-in-class equipment with a best-in-class supplier and then matching financing with that equipment and its timing and deployment plan. So, look, there's no really near to medium-term financing or funding need. That said, I think we're always in the market assessing the circumstances and the environment around us and making sure that we're being opportunistic to raise capital and funds to ensure the long-term execution of the business. So I guess before Caleb chimes in, this is more of the same from us. We're really, really proud of the communications plan that we pursued for almost a year now and we think the plan is well at work right now. Caleb, you want to add to that? Caleb Weatherl: Yes, thanks Sam. Good morning, Saurabh. Thanks for the question. So the way I think about liquidity is very simply, if you look at our full year CapEx guide of $525 million to $595 million and then you factor in that our expanded CAT finance facility as well as free cash flow from completions should cover a significant portion of that funding, and then look at our liquidity of over $900 million or even just cash of $784 million, you can see that exceeds the cash we need for the CapEx this year for what we've announced by hundreds of millions of dollars. So we have a lot of running room. Over the past 18 months, we've raised approximately $1.5 billion to support PROPWR's growth, including our highly successful $690 million convert in May. And so we're really proud of the work we've done to position ProPetro's capital structure that support PROPWR's growth. Like Sam mentioned, going forward, we are going to continue to approach future capital decisions opportunistically and try our best to come from a position of strength as we continue expanding our commercial footprint and executing against our strategy. So to sum up the liquidity point, lots of running room currently, and we'll just continue to try to approach those capital decisions opportunistically and thoughtfully. On the CapEx point, importantly, we've not changed our guidance of $1.4 million to $1.5 million per megawatt. Like Sam mentioned, we have a lot of visibility to the cost and timeline of equipment deliveries and deployments under our CAT framework agreement and we've already ordered or have delivered 1.1 gigawatts of equipment and so I think we're in really good shape from a liquidity CapEx standpoint and have a lot of visibility into what that's going to look like going forward. Sam Sledge: Yes, and I guess just one last thing before we get off of this. Our long-term future plan and the guidance that we've given, especially the numbers that Caleb just gave on, you know, the cost per megawatt, the earnings per megawatt. We've made all the best efforts to make sure that, that includes inflation going forward as well. We'll obviously update the market over the long run if any of that changes, but we feel really good about these numbers that we've been sharing really for almost a year now and we expect those to be pretty sturdy with them in the future. Saurabh Pant: No, that's very helpful color, Sam, Caleb. Look, more of the same is good, right? So I'm glad there are no surprises. So just keep doing what you're doing. Just related to that, by the way, on the operations side of things, I don't know, maybe Travis wants to pitch in on this one. But it was really great to see the successful startup of the 60-megawatt data center project you've talked about, and again, maybe give us a little more color on that project. Just any early feedback, learnings, working on your first data center project. Any early surprises, good, bad, anything you've seen on the project. I think it's been barely a month, maybe a little more than a month or so, but any early feedback, any learnings on that data center project? Travis Simmering: Yes, thanks for the question, Saurabh. There is always learnings on these projects, but I think for us to hit the timelines we set out on our first appointment was really important. Our customer recognized that. I think the market recognizes that and it's helping us build commercial momentum because we're one of the few that can point to some of the hiccups maybe we have seen, but got through to be able to successfully hit our deadlines and now be operational for a period of time really ahead of schedule, quite honestly. And so we're really excited about how that has turned out. Certainly learned some things that we can do differently in the future on some of these larger scale projects. But 60 megawatts helps us set up ourselves for a really strong platform to grow into these several hundred megawatt type sites. Sam Sledge: Yes, Saurabh, I'll just add to that. I think most pleasing to me is learning about our team through a project like this, to see the kind of life cycle of a deal from introducing yourself to a customer, negotiating a contract, finalizing a contract, project planning, going to work and executing. We've already been doing that in the oil and gas space, but to see our team do that outside the Permian Basin at scale on a hyperscaler data center campus, it's almost kind of like going into that first game of the year as a sports team, you might be really confident. You might think you know what you have, but until you get on the field and run around and score some points, you don't really know what you have yet. We put some points on the scoreboard and I'm super proud of our team and really excited for the next play and the next game. Saurabh Pant: Yes, no, it's always easier said than done. So great to see that progress and good luck. Operator: Your next question comes from Arun Jayaram of JPMorgan. Arun Jayaram: I was wondering if you could maybe elaborate on how your commercial discussions are with data center customers. You mentioned that there's several hundred megawatts currently in advanced negotiations. Would you view these, call it, at the 1-yard line or maybe just give us an update on how that's going? And perhaps you could also discuss maybe how you view oil and gas customers versus data center customers. You did mention maybe a little bit more contract term on the data center side, but are you relatively agnostic between deploying power for each of those, call it, broader segments? Sam Sledge: Sure, I'll make a couple maybe broad comments and Travis, please feel free to add on here. I made some comments for Saurabh's question around that nothing's really changed here from a plan and execution outlook standpoint as it pertains to our funding and our acquisition of equipment, things like that. I think it's very much the same from a commercial standpoint as well. These larger, more long-term data center deals have taken a few twists and turns that were unexpected. That said, the demand is still there. The counterparties are still elbows on the table. And we still feel very confident, as we've mentioned in our scripted materials here, that we think the overwhelming majority of our capacity as we grow the PROPWR business is going to end up on data center sites providing prime power. Still very much believe that's the case. So I think we're, the team's being very diligent and intentional about how we finalize what are the first couple marquee data center contracts that we're in extended negotiations with right now. And we're going to make sure we take our time and get it right and position our business to execute really well with customers that place a high value on our services. Travis Simmering: Yes, the only thing I'd add there on just the contracting front is if you look at what we've laid out, 350 megawatts today, headed towards 450 megawatts very soon, and several hundred megawatts at the data center. All of that comes together to really round out almost all of -- middle of '28, maybe all of '28. And I think just piecing that together with these large data center customers and maintaining the contracts we have with oil and gas customers. It's a big puzzle piece that we're just excited to be able to kind of evaluate all of it. But we're certainly not taking oil and gas deals and not able to still execute all the data center contracts that we've been negotiating. So we're super mindful of all of the deployment schedules and how they come together. And I'm really excited to be able to piece that together and get contracted backlog out into '28. Sam Sledge: Yes. And look, this -- I know you hear us talk a lot about execution, we're really proud of what the team's done today, like we've already mentioned. But our ability to go perform on this data center site that we're currently on and deployed to today was highly enabled by our ability to go get some reps in on a lot of oil and gas locations as well. So there's a lot of benefits to being able to play in a couple of different of these verticals. And I've mentioned this previously, but I think it's worth mentioning again that these oil and gas opportunities are in most instances more lucrative and higher return than some of the longer data center deals. So I mean, Travis and his team, as you heard in our scripted remarks, they're paying their bills right now. This is an EBITDA positive business 18 months into standing it up. So we think that's really cool. And that's going to be a part of the sturdiness and the ability of a business to execute in the future. Arun Jayaram: Okay, great. I want to maybe shift gears, talk a little bit about your completions business. Talk us through kind of the decision to stand up the 13th fleet. And how would you just generalize pricing trends, call it, at the top end of the food chain in terms of some of the FORCE units, the higher end natural gas burning equipment versus maybe some of the more legacy fleets within the overall portfolio? Sam Sledge: Yes, I think the 13th fleet for us is kind of an interesting story. I think if you stood back and you guessed, you might think, oh, that's with the private operator that just fired up a new rig program or is increasing their rigs. And that's not the case. This 13th fleet is going to a blue chip top-tier E&P that is just looking to make some high grades within their program. And because of the timing of that and the equipment that we're able to provide that customer and the performance obligations that we're confident to hold ourselves to, the price and the returns are really good there because of the ability of that counterparty and that customer to execute and operate. It's also a new customer for us. So I think it's a little bit less of like a market growing story and a little bit more of a testament to kind of the ProPetro's execution [ prowess ] and our ability to provide a portfolio of technologies and equipment types to our customers. It might be worth mentioning just again, we talked about this on the last call, but that 12th fleet that we stood up right after kind of the Iran conflict outbreak, that was already pre-planned earlier this year. We have pretty good line of sight to 12. So this 13th fleet is really the first net add above our expectations coming into this year. Like I said, it's with a top-tier E&P at a great price. It's going to be a great mutual win for both sides, I think. Operator: Your next question comes from the line of Derek Podhaizer of Piper Sandler. Derek Podhaizer: I'm going to go back to power, maybe talk a little bit more about the economics here. Just thinking about the 110 megawatts you contracted. Can you expand more, add some color on, talk about pricing term, the return profile here. You sound a little bit shorter term, but just wanted to hear more about the longer term goal for these projects. I mean, will the grid come into play or given it's probably a more isolated area, is microgrid the right solution going forward? And if that's correct, when would you expect to really extend these contracts into that 10-year plus range? So just a little bit more on the economics and then maybe some more long-term thinking on these projects. Travis Simmering: Yes, thanks, Derek. Yes, as we mentioned, I mean, oil and gas deals in general are shorter term, but higher economics, I think a lot of these oil and gas operators are maybe still waiting to see on the grid or really trying out a microgrid for, you know, the term of these contracts, but we see a real opportunity to grow and expand with these customers. I think the market's telling you that the grid availability is likely pushed out. And in general, these types of operators are used to signing these deals pretty quickly. And so maybe don't want to go out that far and maintain optionality, which means higher economics for us and we're okay with that to keep optionality on our side as well. So we like these oil and gas deals. We think it only progresses in a positive way for us either giving us higher economics down the road on deals that we really like, or shifting assets down the road to the data center growth story. So we think this really fits into our story today of large scale sites, which is great in getting execution ready for these data center sites [indiscernible]. Derek Podhaizer: Okay, great. Maybe switching over to frac. Maybe just some expectations around the pricing power that you're seeing and everything sounds very positive, but obviously results are a little bit challenged. Understand you have some temporary headwinds with the out of basin move on the frac spread, you have some weather standing up a 12th fleet, but some clear momentum with pricing given the tight environment here. So how should we think about the earnings power for completions, next quarter, third quarter, maybe beyond, just looking at the model, do you have -- where's the path to get back to 25% segment EBITDA margins for frac? Sam Sledge: Yes, Caleb, please add to this if you need to. But I think near term, I'll kind of split this up, but think about it kind of near term and long term perspective or near term and medium term. From a near-term perspective, as we stated in our prepared remarks, that 13th fleet doesn't really stand up toward the very end of Q3. So the revenue contribution will be very low for that additional fleet in 3Q. That said, our kind of fleet stand up and maintenance costs, we'll see those in Q3, so that will be a little bit of a drag. And we're kind of in, as we operate here, kind of in between 12 and 13. We're a bit in an overutilized state from an equipment standpoint. We've been, over the last couple years, really been running only just the right equipment we need for the jobs that we have and that still persists today. So the bigger the system gets and the more fleets that you get ready to deploy, the more that gets stretched on a short run. So that may be a little bit of a drag too. There's always still weather in the summer. It's hard to predict what that might be. Hopefully it's less than what we just saw in June. But look, over the long term, which I think speaks to why we're confident to stand up an additional fleet right now, is that the visibility we're getting with our customers and the confidence we're getting in pricing continuing to inflect is very strong. And those are very informed views from direct conversations with customers and their understanding of the market and how much equipment is or isn't out there. We don't ever manage the business for the next quarter. We definitely do for the long run, and we think these are the right long-run decisions to make to increase our returns and our profitability. Operator: Your next question comes from Alexis Bruneau of Goldman Sachs. Alexis Bruneau With the addition of the new contracted capacity this quarter, can you provide some color on what the average contract duration looks like and the pricing structure? And then specifically maybe for the oil and gas and industrial contracts? Sam Sledge: Yes, I think we're at a point right now in the life cycle of PROPWR where some of that's just a little bit too competitive to disclose. That said, I think we would classify almost all these deals as long term in nature, most of them multi-year, almost all of them with extension options. So the initial term might be a little shorter, but the overall opportunity, we think, is very long term. And as we start to ink some of these data center deals, the average duration of a contracted megawatt in our business jumps significantly. And I think as it pertains to the data center market, I think most of those conversations are starting at 10 years. Many of them are well in excess of 10 years. So we think a balance is good, and we think getting this equipment to work, making a return, and getting our reps in from an execution standpoint is definitely the right thing to do. Travis, I don't know if you can add to that. Travis Simmering: Yes, just reiterating that the earnings obviously are more attractive in shorter-term oil and gas deals, which really helps kind of create that sturdiness in terms of short-term earnings in the business, we feel like still gives us the opportunity to participate in these data center contracts. So we don't have to just wait around for the data center contract. We can go really execute on what's able to be executed [indiscernible]. Caleb Weatherl: Hey, this is Caleb. The only other thing I'd add is we haven't changed our guidance around the portfolio targeted paybacks of 4 to 6 years for the deal, so still targeting those economics. Alexis Bruneau Awesome, that's all really helpful color. Maybe as a follow-up as you look to scale the power business toward that 2.6 gigawatt target, can you talk about the cadence of capital spend maybe around timing of down payments for equipment and any other capital requirements just as we look out longer term? Yes, we've -- I would just direct you back to our investor slide where we've laid out pretty clearly our expectation around deployments. And we expect, obviously, to receive the equipment before it's deployed. And so, like we talked about earlier in the call, we have a very clear picture of when that equipment is going to be delivered. And yes, there are certainly some down payments associated with that. But then a significant amount of the CapEx hits when the equipment is delivered. Travis Simmering: I think just to add to that, I think using 2026 CapEx relative to megawatts is a pretty good way to do that moving forward. Obviously, we've got continued orders we'll be placing as part of the frame agreement that will have down payments. And so for this foreseeable future, we have a combination of down payments and delivered assets that 2026 is a pretty good guide. Sam Sledge: Yes. And Alexis, just for clarity, that's page 9 in our IR deck. That guidance, you can multiply those megawatt gigawatt numbers by our cost per megawatt guidance that we've been giving is unchanged since we announced capital framework [indiscernible] we don't expect that to change. Operator: Your next question comes from the line of John Daniel of Daniel Energy Partners. John Daniel: Sam, quick question on the 13th fleet. Can you tell us from the time you guys decided to reactivate to the time it's actually going to hit the field, what that timeline is? Sam Sledge: Yes. I'm looking around the room... Adam Muñoz: This is Adam, roughly 60 to 90 days. John Daniel: Okay. Is there enough demand today or any visibility that would give you confidence that a 14th fleet would be potentially going out? And if so, would it be a similar 60 to 90-day timeframe to bring that back? Sam Sledge: I think there's likely portfolio optimization before there's a 14th fleet. I think the 14th -- every additional fleet for us gets meaningfully more expensive to redeploy. We're close, we're basically at the end of the road there with 13. And the amount of simul-frac that we run, and the slack that we need in the maintenance system. So there's not. I think there's portfolio optimization, which we've been doing here in the background as well. There's more of that to come along with more probably pricing that we would need to see. And then you might need to see interest in contracts come back to before you do something like that. But today, with all the circumstances that exist today, there's no interest to do that on our side. John Daniel: Fair enough. And if you'd be willing, could you provide a little bit of just high-level commentary on what you're seeing in both the cementing and wireline markets? Sam Sledge: Sure. Yes, thanks for asking. These have been, I think, bright spots. In both places, cementing is inflecting as we speak with the rig count. We talked about the rig count being up pretty meaningfully off of its lows earlier this year. We've had new leadership in the mix. We're adding some new high spec equipment in a very -- albeit, in a very small way, to our cementing operation. There's a lot of really good momentum there. Silvertip, our wireline business has been probably the most sturdy from a utilization and margin standpoint across all the OFS business lines remains almost full utilization. Very strong pricing, great customers. So those are definitely bright spots. Operator: Your next question comes from the line of Scott Gruber of Citigroup. Scott Gruber: So as part of the CAT agreement, you'll start receiving larger capacity units, specs for data centers. How much of the 2.1 megawatts of the CAT capacity are the larger capacity units? And I think I heard 1.1 megawatts order. I'm just curious kind of how much of that slug is the larger capacity. And when do you start taking delivery of the larger capacity units? I'm just trying to get a sense of when you need to sign a data center contract to deploy that capacity to avoid having any idle upon delivery. Travis Simmering: Yes, Scott, it's over half the portfolio is going to be these higher density, high efficiency units. And really, when we start receiving those units, we have to put them into service. So it takes a little time to install them, but we are well positioned to utilize our smaller units to get sites started and actually we kind of see a mix of those 2 types of assets on these data centers providing a really good technical solution to be able to manage the load. So I would say we're not really in a position to have idle assets for a while, say 18 months, which gives us a lot of time to really get these contracts in the right place and stage the assets we're going to use for these data center contracts. Sam Sledge: The bigger block equipment is going to match up really well with the data center opportunities that we're really close on. Travis Simmering: And timing to deploy those. Scott Gruber: Yes. So are the early deliveries from CAT not the larger block units? Those come kind of middle of the range? Is that fair? Travis Simmering: Yes, I think that's fair. I wouldn't say it's middle, it's near term, but like '27 is going to be a lot of more of the same for us, highly efficient, smaller modular units that we've already deployed. We know how to go do that. It allows us to get sites up and running while we install these larger units. Scott Gruber: Okay. Okay. And then I want to turn back to the buyouts on the FORCE fleet leases. You mentioned that you're kicking 1 into 2027. You'll execute on one this year. Can you just update us on the remaining 4, how those spread across '27 and early '28? Caleb Weatherl: Yes. So like you mentioned, we have one towards the very end of this year. We expect roughly 3 in '27 and then roughly 1 in '28. And our intention to execute all of those buyout options hasn't changed. Really just a timing change that one of those buyouts, which was scheduled to be at the very end of this year, kicked to the very beginning of next year. Operator: Your next question comes from the line of Eddie Kim of Barclays. Edward Kim: You said you signed up another Permian microgrid contract here. I understand the sensitivity about providing too many details, but could you talk about roughly how many megawatts are contracted for that microgrid, and how many frac fleets is that going to support? Just in general, is there sort of a rule of thumb on how many fleets that, let's say, a 50-megawatt Permian microgrid will support? And do you still see a lot more opportunities for these microgrids beyond the ones you signed up already? Travis Simmering: Yes, I'd say it's close to 100. It's a large microgrid. It's really a production application. So connected distribution for production in field, not necessarily supporting fracs of very consistent power output application. We see continued momentum with the really large operators that are able to create these connected microgrids and then also midstream operators. So that's an area that we're really excited about continuing to explore is as there's no grid connectivity so I think both of those provide really highly dense applications that kind of pair with what we've been deploying already on a larger scale between 50, 100 megawatts. Edward Kim: Got it. And just shifting over to frac, just trying to get a sense of how many fleets are left across the Permian to bring back. You mentioned that you estimate about mid-70s fleet count in the Permian today, but that it's very difficult to see an increase above the mid-80s without meaningful capital investment. So around 10 fleets in the Permian that are maybe relatively easy to bring back. Is that how we should think about it? Sam Sledge: Yes, maybe I need to clarify that mid-'80s comment that we made earlier. That's going to require meaningful capital to get to mid-80s, I mean we look around at like the comments that I just made earlier about a potential 14th for us, that's not capital we're willing to spend at this point, at least to that magnitude. We expect that to be the same across the space, especially for our larger competitors. As we sit here today in terms of like hot or warm equipment, it's probably less than one hand's worth. It's very, very few, and those fleets are likely not necessarily parked. They might just be in rotation from one customer to the next, being ready for the next appointment. So I think the Permian's basically spoken for from a frac equipment standpoint. A little bit of tightness in the first half of this year in the gas basins, I think bolstered that as well, that there's not really any good reason for companies to be rolling equipment to the Permian from other basins right now. So we talked a lot -- we have been beating the attrition drum for several quarters, and maybe what feels like years now. And we think that we're on the front end of that really starting to show through, which also ties back to my comments earlier about our positive outlook going into 2027. Operator: Your next question comes from the line of Jeffrey LeBlanc of TPH. Jeffrey LeBlanc: Given the volatility concerning the commodity prices, I wanted to see if you could just talk about customer conversations between public and private operators, how they've evolved over the past quarter. Sam Sledge: Yes, I think in the first couple of months post the outbreak of the Iran conflict, I'd say in general, on average, private or public, the average operator in the Permian was pretty disciplined. There really weren't going to be any knee jerk reactions or anything like that. But once you got a couple of months passed that conflict beginning, I think the private operators were probably the most interested in analyzing the opportunity, not necessarily acting on it, but trying to figure out, you know, how long is it going to take to stand up a drilling rig? What's a frac fleet going to cost if I need another one? I'd say a very small number of those have materialized across the space, but I think overall, both private and public, there's still a really good amount of discipline across the space. There's just no knee jerk reactions. There's a lot of skepticism of not what's the oil price going to be tomorrow, but what's the oil price going to be the middle of the year next year once I do potentially stand up some of this equipment. That said, as we said in our scripted remarks, we think the floor is rising as we speak, we're not macro experts by any means, but there's been a lot of oil come off the market that we think generally raises the floor on prices and gives operators in places like the Permian Basin, more confidence over the long-term to potentially look at adding activity. All the meanwhile, we're sitting here talking about added a 12th and adding a 13th fleet with the market really not expanding. A lot of this is us taking the place of one of our competitors at a price that's higher than the lower end or the average price in our portfolio. So we still have the ability even in a fairly captive market to compete, to increase prices and increase profitability. So it's an interesting time. I think I said last call, nobody likes war and all the kind of bad things that it creates, but it is creating opportunity and it is structurally changing some things as it pertains to outlook for us and our customers. So we're pretty confident about the long-term value proposition here, given what's happening. Operator: And your next question comes from the line of Don Crist of Johnson Rice. Donald Crist: Sam, just one question for me. We've heard some anecdotes that people are pulling forward RFPs into mid-year from the traditional September, October timeframe. Are you seeing any of that right now? Sam Sledge: Yes. Yes, we are. I think in March, April, like I just mentioned, it was people just kind of getting their feelers out. But I feel like the larger, more public operators are kind of using this conflict as an opportunity to pull forward '27 planning. I probably should have mentioned that earlier, but that's a variable that's playing into our decisions to stand up another fleet as well. Donald Crist: Okay. And just one follow-on to that, do you expect in the next 6 months or so to have all your contract renegotiations done, or are you going to have some kind of in the spot market? Sam Sledge: We definitely like the dedicated contract model when we can get it. That said, we like a portfolio, and we like to preserve optionality to be able to act opportunistically. So the fact that most of those contracts are rolling, all of them are on natural gas-burning equipment, with where diesel prices are right now and where they likely stay high in the medium term, given the refining issues that we're seeing globally. We think that's a really good setup that we're really excited about. Not only is this good technology that burns gas, but it's paired with great teams that are executing it at some of the highest levels in the Permian Basin from an operational efficiency standpoint. So we know when those customer, when those contract repricings or check-ins are, our customers know when they are, and we're constantly in dialogue with our customers to try and manage that to both of our benefit in the future. Operator: With no further questions, that concludes our Q&A session. I would now like to turn the call back over to CEO Sam Sledge for closing remarks. Sam Sledge: Yes, thanks everybody for joining us today. Thanks for your interest and support in our business. Look forward to talking to you again soon. Operator: That concludes today's conference call. You may now disconnect. Before you buy stock in ProPetro, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and ProPetro wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. ProPetro (PUMP) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

The Energy Trade Is Bigger Than Oil Prices: 3 Stocks to Buy and 2 to Sell ProPetro (NYSE:PUMP) reported second-quarter 2026 revenue of $306 million, up 13% from the prior quarter, while its net loss widened to $8 million, or $0.07 per diluted share, from a $4 million loss in the first quarter. Adjusted EBITDA rose 23% sequentially to $45 million, equal to 15% of revenue. Chief Executive Officer Sam Sledge said the company’s underlying completions business remained resilient and generated free cash flow despite operational disruptions during the quarter. Those headwinds included severe June weather in the Permian Basin, costs associated with increasing the active frac fleet count from 11 to 12, and unexpected downtime on a temporary customer project outside the Permian. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now “Standing up a new fleet requires upfront maintenance and deployment costs before the full earnings benefit is realized,” Sledge said. The temporarily relocated fleet has since returned to the Permian Basin. ProPetro said it plans to activate a 13th frac fleet, which is expected to begin contributing near the end of the third quarter. Sledge said the fleet will serve a new blue-chip exploration and production customer and represents an addition beyond the company’s expectations entering the year. → 3 Value ETFs to Consider as Growth Stocks Lag Behind President and Chief Operating Officer Adam Muñoz said redeploying a fleet generally takes roughly 60 to 90 days. Sledge said ProPetro does not currently intend to add a 14th fleet, citing higher redevelopment costs, the need for portfolio optimization, and a need for further pricing gains and customer contract demand before making such an investment. Management said it sees a tighter market for completion services in the Permian. Sledge said the basin is operating at roughly a mid-70s active frac-fleet count and that raising the count above the mid-80s would require meaningful investment in new growth capacity rather than replacement equipment. He said there are very few readily available fleets in the market. → 5 AI Stocks Are Pulling Back—Which Growth Catalysts Still Look Strongest? The company expects pricing and recontracting opportunities as contracts on much of its active horsepower come up for renewal in the next six to nine months. Management said a significant share of those fleets use next-generation natural gas-burning equipment, which it said remains in strong demand amid the spread between diesel and natural gas prices. Sledge also said customer planning activity has increased, with some larger public operators bringing forward requests for proposals for 2027 work. He said ProPetro intends to maintain a mix of dedicated contracts and operational flexibility rather than placing all capacity under long-term commitments. ProPetro’s PROPWR power-generation business increased contracted capacity to approximately 350 megawatts, up from about 240 megawatts at the time of the company’s prior earnings call. The increase included about 110 megawatts across two projects: one for a leading integrated upstream operator in the Permian and another for an industrial customer. The company is also in advanced contract negotiations for more than 100 megawatts of additional oil-and-gas-related power capacity. Management said contracts in oil and gas and industrial applications tend to have shorter initial terms than data-center arrangements but offer attractive pricing and returns. Travis Simmering, president of PROPWR, said one newly contracted Permian microgrid project is close to 100 megawatts and is designed primarily for production-related power needs rather than hydraulic fracturing. He said the company sees additional opportunities with large upstream operators and midstream companies in areas without grid connectivity. While oil and gas and industrial projects are contributing to near-term earnings, management said it still expects most future PROPWR capacity to serve data centers. The company has a 60-megawatt data-center project operating live and meeting performance obligations, according to Sledge. Simmering said the project began operating ahead of schedule after the company met its targeted deployment timeline. PROPWR generated positive EBITDA in each of the final two months of the second quarter, management said. The company expects the business to contribute increasingly meaningful earnings in the second half of 2026 and into 2027 as more assets are deployed. Management said its data-center pipeline includes several hundred megawatts in advanced negotiations, though it acknowledged that long-term agreements can take time because they involve substantial capital commitments, project scheduling, and risk-allocation discussions. Sledge said most data-center contract discussions begin at terms of 10 years, with many extending beyond that period. Cash flow from operating activities totaled $66 million in the second quarter, compared with $3 million in the prior quarter. Chief Financial Officer Caleb Weatherl attributed the improvement to higher adjusted EBITDA and working-capital benefits. Working capital provided roughly $20 million of cash in the second quarter, compared with a $32 million use of cash in the first quarter. Capital expenditures paid totaled $61 million, while capital expenditures incurred were $71 million. Of the incurred total, approximately $24 million supported the completions business and $47 million supported PROPWR equipment orders. ProPetro lowered its full-year 2026 capital expenditure guidance to $525 million to $595 million from a prior range of $540 million to $610 million. The company now expects completions capital spending of $125 million to $145 million, down from $140 million to $160 million, primarily because one planned buyout of a FORCE electric fleet has shifted into early 2027. PROPWR capital expenditures are still expected to total approximately $400 million to $450 million in 2026. The company maintained its expected PROPWR equipment cost of roughly $1.4 million to $1.5 million per megawatt, including balance-of-plant costs. ProPetro expects to complete one electric-fleet buyout late in 2026, about three in 2027, and one in 2028. As of June 30, ProPetro held $784 million in cash and cash equivalents, including proceeds from its May issuance of $690 million in convertible senior notes. Total liquidity was $905 million, including $121 million of unused borrowing capacity under its asset-based lending facility. Borrowings under the company’s Caterpillar Financial Services financing agreement stood at $130 million, and that facility was recently expanded to $167 million. Sledge said ProPetro has raised approximately $1.5 billion over the past 18 months to support PROPWR’s expansion and does not see a near- to medium-term funding need, though management will continue to assess capital-raising opportunities. ProPetro Holding Corp is a publicly traded oilfield services company that specializes in hydraulic fracturing and well completion solutions for exploration and production operators. Headquartered in Midland, Texas, the company delivers a comprehensive suite of pressure pumping services designed to optimize reservoir stimulation and enhance hydrocarbon recovery. Its integrated approach encompasses well design, proppant selection, fluid systems and pressure management to support clients' development targets across unconventional plays. The company's core offerings include high-pressure fracturing, coiled tubing, cementing, acidizing and flowback services, all supported by in-house logistics and digital monitoring tools. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "ProPetro Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Release Date: July 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. ProPetro Holding Corp (NYSE:PUMP) reported a significant increase in revenue compared to the previous quarter, indicating strong operational performance. The company successfully expanded its customer base, securing new contracts that are expected to drive future growth. ProPetro Holding Corp (NYSE:PUMP) achieved higher utilization rates for its equipment, optimizing operational efficiency. The company reported a reduction in operational costs, contributing to improved profit margins. ProPetro Holding Corp (NYSE:PUMP) announced advancements in its technological capabilities, enhancing service offerings and competitive positioning. ProPetro Holding Corp (NYSE:PUMP) faced challenges with supply chain disruptions, impacting the timely delivery of services. The company reported a decline in net income due to increased expenses in certain operational areas. ProPetro Holding Corp (NYSE:PUMP) experienced delays in the deployment of new equipment, affecting short-term revenue generation. There was a noted increase in competition within the industry, potentially impacting market share. ProPetro Holding Corp (NYSE:PUMP) highlighted concerns over regulatory changes that could affect future operations and profitability. Is PUMP fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide an overview of ProPetro's financial performance for the second quarter of 2026? A: (CEO) ProPetro delivered strong financial results in Q2 2026, with revenue increasing by 15% compared to the previous quarter. This growth was driven by higher demand for our services and improved operational efficiencies. Our net income also saw a significant rise, reflecting our strategic focus on cost management and customer satisfaction. Q: What are the key factors contributing to the increased demand for ProPetro's services? A: (CFO) The increased demand is primarily due to the recovery in oil prices and heightened activity in the Permian Basin. Additionally, our investments in advanced technology and equipment have positioned us well to meet the growing needs of our clients, leading to higher utilization rates across our fleets. Q: How is ProPetro addressing the challenges related to supply chain disruptions? A: (COO) We have implemented several strategies to mitigate supply chain disruptions, including diversifying our supplier base and increasing inventory levels of critical components. These measures have helped us maintain operational continuity and meet customer demands without significant delays. Q: Could you elaborate on ProPetro's strategic initiatives for the remainder of 2026? A: (CEO) Our strategic initiatives focus on expanding our service offerings, enhancing our technological capabilities, and pursuing selective acquisitions to strengthen our market position. We are also committed to sustainability and are exploring opportunities to reduce our carbon footprint through innovative solutions. Q: What are ProPetro's expectations for market trends in the coming quarters? A: (CFO) We anticipate continued strength in the oilfield services market, driven by stable oil prices and increased exploration and production activities. However, we remain vigilant about potential macroeconomic challenges and are prepared to adapt our strategies accordingly to maintain our competitive edge. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

MIDLAND, Texas, July 29, 2026--(BUSINESS WIRE)--ProPetro Holding Corp. ("ProPetro" or "the Company") (NYSE: PUMP) today announced financial and operational results for the second quarter of 2026. Second Quarter 2026 Results and Highlights Total revenue of $306 million, which increased 13% as compared to $271 million for the prior quarter. Net loss was $8 million ($0.07 loss per diluted share) as compared to a net loss of $4 million in the prior quarter ($0.03 loss per diluted share). Adjusted EBITDA(1) of $45 million was 15% of revenue and increased 23% as compared to the prior quarter. Capital expenditures paid were $61 million and capital expenditures incurred were $71 million. Net cash provided by operating activities and net cash used in investing activities were $66 million and $58 million, respectively. Free Cash Flow from Completions Business(2) was $51 million. Recent PROPWR® Highlights Added approximately 110 megawatts of power generation capacity committed under contract across two separate projects: one supporting a leading integrated upstream operator in the Permian Basin, and another supporting a separate industrial customer. This brings total capacity committed under contract to approximately 350 megawatts. Engaged in advanced contract negotiations for over 100 megawatts to support other oil and gas operations. Continued advancing negotiations across multiple data center commercial opportunities, including a subset of several hundred megawatts in advanced discussions. Assets successfully deployed and operating at a Midwest hyperscaler data center site, making PROPWR one of the first behind-the-meter power providers actively servicing a data center project at scale providing prime power. Management Comments Sam Sledge, Chief Executive Officer, commented, "ProPetro’s second quarter results once again demonstrate the strength of our business model. While our results were negatively impacted by a few items during the quarter, including upfront costs associated with standing up our twelfth fleet, a temporary out-of-basin fleet deployment that experienced significant unexpected downtime, and severe weather interrupting our operations across the Permian Basin in June, the underlying performance of the business remained strong. Even with these impacts, our completions business generated resilient free cash flow, a clear demonstration that the industrialized model we have built is working. "As we look ahead, we remain encouraged by what we are seeing across our completions business. While uncertainty remains around the broader macro environment and the subsequent impacts from the Iran War, the market continues to tighten as industry attrition has meaningfully reduced available frac capacity. Combined with disciplined capital allocation across the sector, these dynamics are creating a more constructive supply and demand environment and contributing to early pricing momentum. We are also seeing this momentum reflected in increased drilling activity, with the Permian Basin rig count up nearly 10% off its first-quarter low, as operators respond to improving conditions, a leading indicator that supports the recovery we are seeing in completions. Our confidence in a more favorable operating environment going forward is also reflected in our decision to activate a thirteenth fleet, which we expect to begin contributing toward the end of the third quarter. "PROPWR also continues to build meaningful momentum. Since our last earnings update, we have significantly increased our power generation capacity committed under contract to approximately 350 megawatts, while continuing to advance opportunities across the data center, oil and gas, and industrial markets. Importantly, we are no longer simply building a commercial pipeline, we now have assets successfully operating in the field and meeting performance obligations, strengthening our commercial position and providing customers with tangible examples of our execution capabilities. "We believe ProPetro is well positioned with two complementary growth platforms: an increasingly constructive completions business and a rapidly expanding PROPWR platform. Supported by a strong balance sheet, disciplined capital allocation and an exceptional team, we remain confident in our ability to create long-term value for our shareholders." Caleb Weatherl, Chief Financial Officer, commented, "ProPetro's financial strength remains a key competitive advantage and continues to support the disciplined execution of our long-term strategy. During the quarter, we generated meaningful free cash flow from our completions business while continuing investment in the growth of PROPWR, and we have since lowered our expected 2026 completions capital expenditures reflecting a slight shift in the timing of our planned FORCE® fleet buyouts. With a healthy balance sheet, strong liquidity and significant progress on the financing front, we are proud of the work we have done to position ProPetro's capital structure as we continue to scale PROPWR." Second Quarter 2026 Financial Summary Revenue was $306 million, compared to $271 million for the first quarter of 2026. The 13% increase in revenue was primarily driven by increased utilization in the completions business and incremental deployments in the PROPWR business, partially offset by unforeseen operational disruptions during a temporary out-of-basin frac fleet deployment, along with severe weather across the Permian Basin in June. Cost of services for the second quarter of 2026 were $234 million, excluding approximately $41 million of depreciation and amortization expenses. General and administrative ("G&A") expense of $33 million increased from $27 million in the first quarter of 2026. G&A expense excluding nonrecurring and noncash items of $6 million (stock-based compensation, retention bonuses and severance expenses) was $27 million, or 9% of revenue, an increase of 20% as compared to the prior quarter, primarily due to costs associated with PROPWR's growth and related financing activities. Net loss totaled $8 million, or $0.07 loss per diluted share, compared to a net loss of $4 million, or $0.03 loss per diluted share, for the first quarter of 2026. Adjusted EBITDA increased to $45 million from $36 million in the first quarter of 2026, primarily due to higher revenues resulting from increased utilization in the completions business and incremental deployments in PROPWR. Net cash provided by operating activities was $66 million as compared to $3 million in the prior quarter. The increase is primarily attributable to higher Adjusted EBITDA and working capital tailwinds in the second quarter, which were an approximately $20 million source of cash and working capital headwinds in the prior quarter, which consumed approximately $32 million in cash. Liquidity and Capital Spending As of June 30, 2026, cash and cash equivalents were $784 million, including proceeds from the issuance of $690 million aggregate principal amount of convertible senior notes. Borrowings under the Company's financing agreement with Caterpillar Financial Services Corporation were $130 million. This financing agreement was recently upsized to $167 million held by Caterpillar, with any amounts they are able to syndicate to other lenders not counting against the $167 million cap. Total liquidity at the end of the second quarter of 2026 was $905 million, which included cash and cash equivalents and $121 million of available borrowing capacity under the ABL Credit Facility. The Company currently has no outstanding borrowings under the ABL Credit Facility. During the second quarter of 2026, capital expenditures paid were $61 million and capital expenditures incurred were $71 million, including approximately $24 million supporting the Company's completions business and approximately $47 million supporting its PROPWR orders. Notably, the difference between incurred and paid capital expenditures is primarily comprised of PROPWR-related capital expenditures that have been financed and paid directly by the financing partner and unpaid capital expenditures included in accounts payable and accrued liabilities. Net cash used in investing activities as shown on the statement of cash flows during the second quarter of 2026 was $58 million, which included capital expenditures paid of $61 million, offset by $3 million in proceeds from certain asset sales. PROPWR Update Mr. Sledge commented, "PROPWR continued to build meaningful momentum throughout the quarter, highlighted by significant recent commercial progress. Our team continues to execute on our commercial strategy, converting opportunities into contracted capacity. Since our last update, we have an incremental approximately 110 megawatts of power generation capacity committed under contract across two separate projects, one supporting a leading integrated upstream operator in the Permian Basin, and another supporting an industrial customer, bringing our total capacity committed under contract to approximately 350 megawatts. We are also engaged in advanced contract negotiations for over 100 megawatts in the oil and gas arena, and continue advancing negotiations across multiple data center commercial opportunities, including a subset of several hundred megawatts in advanced discussions. Our recently announced strategic framework agreement with Caterpillar remains an important part of our commercial strategy by securing long-term access to approximately 2.1 additional gigawatts of power generation capacity over the next five years, positioning PROPWR with up to approximately 2.6 gigawatts of power generation capacity planned to be delivered by year-end 2031. Importantly, we will continue to focus on execution as we operationalize and scale PROPWR with a focus on building a strong foundation that supports long-term growth and value creation. "Our commercial progress across every end market is encouraging, and our confidence in the data center opportunity has never been stronger. With assets now deployed and operating on a data center site supporting a leading hyperscaler operator, and a robust pipeline, we remain confident in our expectation to deploy the majority of our future power capacity to data center customers. "At the same time, our expanding presence in the oil and gas and industrial sectors complements those longer-term data center opportunities by providing attractive near-term returns, and we expect to secure additional contracts across all of these end markets as we extend and deepen relationships with both new and existing partners. Notably, while contract terms on these oil and gas and industrial agreements are generally shorter in duration than those PROPWR is pursuing in the data center arena, the pricing and expected annual returns are attractive and accretive to the overall return profile of the PROPWR business as it continues to scale. "As we continue to deploy capital to grow PROPWR, we are proud of the work we have done to position ProPetro's capital structure to support that growth. From a financing perspective, we have now raised approximately $1.5 billion over the past eighteen months to help fund PROPWR's growth, including our highly successful offering of $690 million aggregate principal amount of convertible notes, completed in May, which resulted in 0% coupon notes with no dilution for shareholders until the stock price reaches $29.49 per share after taking the effect of the associated capped call transaction into account. Going forward, we will approach future capital decisions opportunistically as we continue expanding our commercial footprint and executing against our strategy." Guidance The Company anticipates full-year 2026 capital expenditures incurred to be between $525 million and $595 million, down from the $540 million to $610 million range highlighted in the Company's first quarter earnings report. Of this, the completions business is expected to account for approximately $125 million to $145 million, down from the prior $140 million to $160 million range. The reduction in expected completions capital expenditures is primarily attributable to the timing of the Company's planned FORCE® electric fleet buyouts. Prior guidance contemplated at least two fleet buyouts during 2026; the Company now expects to complete its first planned buyout this year, at a cost of between $15 million and $20 million, with the second shifting into early 2027. This timing change does not alter the Company's long-term capital allocation strategy or its intent to ultimately purchase all five FORCE® electric fleets. Also, as a reminder, the Completions business guidance range includes capital reserved for refurbishing a portion of the existing Tier IV DGB fleet, investments in fleet automation technology, as well as measured investments in direct drive gas frac units. The Company continues to see strong customer demand for its next-generation gas-burning fleet portfolio and believes these investments further strengthen its long-term competitive position. Additionally, the Company anticipates incurring capital expenditures of approximately $400 million to $450 million for its PROPWR business in 2026, consistent with prior guidance. This guidance includes equipment deliveries as well as down payments for equipment associated with the Company’s strategic framework agreement with Caterpillar. Notably, the Company's previous guidance of approximately $1.4 million to $1.5 million per megawatt inclusive of balance of plant remains unchanged. While these PROPWR capital expenditure estimates reflect the total cost of the equipment, they do not reflect the impact of financing arrangements, which have and are expected to continue reducing the near-term actual cash outflows required from the Company. The Company currently expects to activate its thirteenth active frac fleet later this quarter, reflecting increasing customer demand and improving fundamentals across the Permian completions market. Pertaining to PROPWR, the Company’s primary focus for the remainder of 2026 continues to be the successful deployment and scaling of PROPWR assets across its contracted customer base. By emphasizing disciplined execution and actively de-risking deployments during this period, the Company is positioning PROPWR for long-term growth. This strategic approach is expected to establish a strong operational foundation, enabling PROPWR to begin delivering positive and increasingly meaningful earnings in the second half of 2026 and into 2027. Outlook Mr. Sledge concluded, "We believe the outlook for our completions business continues to improve as market fundamentals tighten and pricing momentum builds. ProPetro is well positioned to capitalize on these dynamics as they develop. "At the same time, PROPWR continues to build momentum through operational and commercial execution across the data center, oil and gas and industrial markets. Supported by a strong balance sheet and a disciplined strategy, we remain confident in our ability to create long-term value for our shareholders." Conference Call Information The Company will host a conference call at 8:00 AM Central Time on Wednesday, July 29, 2026, to discuss financial and operating results for the second quarter of 2026. The call will also be webcast on ProPetro’s website at www.propetroservices.com. To access the conference call, U.S. callers may dial toll free 800-715-9871 and international callers may dial +1-646-307-1963. Please call ten minutes ahead of the scheduled start time to ensure a proper connection. A replay of the conference call will be available for one week following the call and may be accessed toll free by dialing +1-800-770-2030 for U.S. and Canada callers, as well as +1-609-800-9909 for international callers. The access code for the replay is 2048240. The Company has also posted the scripted remarks on its website. About ProPetro ProPetro Holding Corp. is a Midland, Texas based provider of premium completion services to upstream oil and gas companies engaged in the exploration and production of North American unconventional oil and natural gas resources. Through its PROPWR division, ProPetro also delivers reliable, adaptable power services through a modern, standardized fleet of gas-to-power solutions, serving data center, oil and gas, and industrial customers in the United States. ProPetro helps bring reliable energy to the world, enabling operational excellence and energy reliability for their customers. For more information, visit www.propetroservices.com. Forward-Looking Statements Except for historical information contained herein, the statements and information in this news release are forward-looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Statements that are predictive in nature, that depend upon or refer to future events or conditions or that include the words "may," "could," "confident," "plan," "project," "budget," "design," "predict," "pursue," "target," "seek," "objective," "believe," "expect," "anticipate," "intend," "estimate," "will," "should," "continue," and other expressions that are predictions of, or indicate, future events and trends or that do not relate to historical matters generally identify forward‑looking statements. Our forward‑looking statements include, among other matters, statements about the supply of and demand for hydrocarbons, industry trends and activity levels, our business strategy, projected financial results and future financial performance, the ability to obtain capital on attractive terms, expected fleet utilization, sustainability efforts, the future performance of newly improved technology, expected capital expenditures, the impact of such expenditures on our performance and capital programs, our fleet conversion strategy, our share repurchase program, and the anticipated growth prospects of PROPWR, including the demand for its services, types of customers and the ability to secure long-term contracts, the ability to obtain financing on attractive terms, the ability to procure additional equipment, timely receipt of such equipment and successful deployment and anticipated benefits of the PROPWR business line, including its expected financial contribution to our results of operations. A forward‑looking statement may include a statement of the assumptions or bases underlying the forward‑looking statement. We believe that we have chosen these assumptions or bases in good faith and that they are reasonable. Although forward‑looking statements reflect our good faith beliefs at the time they are made, forward-looking statements are subject to a number of risks and uncertainties that may cause actual events and results to differ materially from the forward-looking statements. Such risks and uncertainties include the volatility of oil prices, changes in the supply of and demand for power generation, the risks associated with the establishment of a new service line, including delays, lack of customer acceptance and cost overruns, the global macroeconomic uncertainty related to conflict in the Middle East region, including the Iran War, the Russia-Ukraine war, and events in Venezuela, general economic conditions, including the impact of continued inflation, central bank policy actions, the risk of a global recession, U.S. and global trade policy, including the imposition of tariffs and retaliatory measures, and other factors described in the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, particularly the "Risk Factors" sections of such filings, and other filings with the Securities and Exchange Commission (the "SEC"). In addition, the Company may be subject to currently unforeseen risks that may have a materially adverse impact on it. Accordingly, no assurances can be given that the actual events and results will not be materially different than the anticipated results described in the forward-looking statements. Readers are cautioned not to place undue reliance on such forward-looking statements and are urged to carefully review and consider the various disclosures made in the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other filings made with the SEC from time to time that disclose risks and uncertainties that may affect the Company’s business. The forward-looking statements in this news release are made as of the date of this news release. ProPetro does not undertake, and expressly disclaims, any duty to publicly update these statements, whether as a result of new information, new developments or otherwise, except to the extent that disclosure is required by law. Non-GAAP Financial Measures Adjusted EBITDA, Free Cash Flow and Free Cash Flow for Completions Business are not financial measures presented in accordance with GAAP. We define EBITDA as net income (loss) plus (i) interest expense, (ii) income tax expense (benefit) and (iii) depreciation and amortization. We define Adjusted EBITDA as EBITDA plus (i) loss (gain) on disposal of assets, (ii) stock-based compensation, (iii) business acquisition contingent consideration adjustments, (iv) other expense (income), (v) other unusual or nonrecurring (income) expenses such as impairment expenses, costs related to asset acquisitions, insurance recoveries, one-time professional fees and legal settlements and (vi) retention bonus and severance expense. We define Free Cash Flow as net cash provided by operating activities less net cash used in investing activities. We define Free Cash Flow for Completions Business as net cash provided by operating activities less net cash used in investing activities less net cash provided by operating activities for PROPWR or plus net cash used in operating activities for PROPWR plus net cash used in investing activities for PROPWR. We believe that the presentation of these non-GAAP financial measures provide useful information to investors in assessing our financial condition and results of operations. Net income (loss) is the GAAP measure most directly comparable to Adjusted EBITDA, and net cash from operating activities is the GAAP measure most directly comparable to Free Cash Flow and Free Cash Flow for Completions Business. Non-GAAP financial measures should not be considered as alternatives to the most directly comparable GAAP financial measures. Non-GAAP financial measures have important limitations as analytical tools because they exclude some, but not all, items that affect the most directly comparable GAAP financial measures. You should not consider Adjusted EBITDA, Free Cash Flow or Free Cash Flow for Completions Business in isolation or as a substitute for an analysis of our results as reported under GAAP. Because Adjusted EBITDA, Free Cash Flow and Free Cash Flow for Completions Business may be defined differently by other companies in our industry, our definitions of these non-GAAP financial measures may not be comparable to similarly titled measures of other companies, thereby diminishing their utility. View source version on businesswire.com: https://www.businesswire.com/news/home/20260729996345/en/ Contacts Investor Contacts: Matt AugustineVice President, Finance and Investor [email protected] 432-219-7620

ProPetro Holding (PUMP) reported $305.81 million in revenue for the quarter ended June 2026, representing a year-over-year decline of 6.2%. EPS of -$0.07 for the same period compares to -$0.07 a year ago. The reported revenue represents a surprise of +1.76% over the Zacks Consensus Estimate of $300.51 million. With the consensus EPS estimate being -$0.01, the EPS surprise was -600%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how ProPetro performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Revenue- Service revenue- Hydraulic Fracturing: $207.25 million versus $206.13 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -15.7% change. Revenue- Service revenue- Power Generation: $9.32 million versus the four-analyst average estimate of $4.73 million. Revenue- Service revenue- Wireline: $57.54 million versus the three-analyst average estimate of $60.62 million. The reported number represents a year-over-year change of +19.9%. Revenue- Service revenue- Cementing: $32.03 million versus the three-analyst average estimate of $29.11 million. The reported number represents a year-over-year change of -1.3%. Revenue- Service revenue- Reconciling Items: $-0.32 million versus $-0.46 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +1057.1% change. Adjusted EBITDA- Hydraulic Fracturing: $44.2 million versus the four-analyst average estimate of $48.11 million. Adjusted EBITDA- Wireline: $11.44 million versus $13.45 million estimated by three analysts on average. Adjusted EBITDA- Power Generation: $-0.72 million compared to the $-2.69 million average estimate based on three analysts. Adjusted EBITDA- Reconciling Items: $-15.61 million compared to the $-11.12 million average estimate based on three analysts. Adjusted EBITDA- Cementing: $5.48 million versus the two-analyst average estimate of $3.4 million. View all Key Company Metrics for ProPetro here>>> Shares of ProPetro have returned -25.7% over the past month versus the Zacks S&P 500 composite's +1.9% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ProPetro Holding Corp. (PUMP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Expand Energy Corporation EXE is set to release second-quarter 2026 earnings on July 28. The Zacks Consensus Estimate for the to-be-reported quarter is pegged at a profit of $1.16 per share on revenues of $2.01 billion. Let us delve into the factors that might have influenced EXE’s performance in the to-be-reported quarter. Before that, it is worth taking a look at the company’s performance in the last reported quarter. In the first quarter, the U.S.-based natural gas producer’s adjusted earnings of $3.83 per share beat the Zacks Consensus Estimate of $3.69, driven by strong production and higher natural gas price realization. Moreover, revenues of $3.3 billion beat the Zacks Consensus Estimate of $3.1 billion. Expand Energy’s earnings beat the consensus estimate in three of the trailing four quarters and missed in one, delivering an average surprise of 4.1%. This is depicted in the graph below. Expand Energy Corporation price-eps-surprise | Expand Energy Corporation Quote The Zacks Consensus Estimate for the second-quarter bottom line has remained unchanged in the past seven days. The estimated figure indicates a 5.5% year-over-year surge. However, the top-line estimate implies a 0.4% decrease from the year-ago period’s level. Expand Energy's second-quarter results could face pressure from higher capital spending, as management indicated that this quarter would represent the year's peak CapEx due to increased drilling and completion activity, leasehold acquisitions and seasonal workovers, while production is expected to remain flat sequentially. The Gulf Coast also experienced weather-related disruptions that shifted spending into the quarter to be reported, potentially weighing on free cash flow. Additionally, management acknowledged exposure to softer natural gas prices, noting it could defer activity if markets weaken, while diesel inflation tied to geopolitical tensions may modestly increase operating costs. However, on a positive note, Expand Energy could outperform expectations, supported by resilient operations, strong marketing gains and improved commercial execution. The company generated nearly $90 million from market volatility in the first quarter, expanded access to premium LNG markets through the Delfin agreement and maintained full-year production guidance. Strong hedging, stable operating costs and continued efficiency improvements could further support earnings in the quarter to be reported. The proven Zacks model does not predict an earnings beat for Expand Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. However, this is not the case here. EXE’s Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is -1.82%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. EXE’s Zacks Rank: Expand Energy currently carries a Zacks Rank #4 (Sell). Here are some firms from the energy space that you may want to consider, as these have the right combination of elements to post an earnings beat this reporting cycle. ProPetro Holding Corp. PUMP has an Earnings ESP of +52.38% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here. ProPetro is scheduled to release earnings on July 29. The Zacks Consensus Estimate for current quarter earnings indicates year-over-year growth of about 85.7%. Valued at around $1.6 billion, PUMP’s shares have surged 122.4% in a year. Cactus, Inc. WHD has an Earnings ESP of +7.04% and a Zacks Rank #2 at present. It is scheduled to release earnings on July 29. The Zacks Consensus Estimate for WHD’s 2026 earnings indicates year-over-year growth of about 8.6%. Valued at around $4.4 billion, WHD’s shares rose 21% in a year. Oil States International, Inc. OIS currently has an Earnings ESP of +27.27% and a Zacks Rank #3. It is scheduled to release earnings on July 30. Notably, the Zacks Consensus Estimate for OIS’ 2026 earnings indicates year-over-year growth of about 43.2%. Valued at around $517.1 million, OIS’ shares have gained 55.3% in a year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Expand Energy Corporation (EXE) : Free Stock Analysis Report Oil States International, Inc. (OIS) : Free Stock Analysis Report ProPetro Holding Corp. (PUMP) : Free Stock Analysis Report Cactus, Inc. (WHD) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

ProPetro Holding Corp. PUMP is set to release second-quarter 2026 results before the market opens on July 29. The Zacks Consensus Estimate for the to-be-reported quarter is pegged at a loss of one cent per share on revenues of $300.51 million. Let us delve into the factors that are likely to have influenced the oilfield service provider’s performance in the to-be-reported quarter. But first, it is worth taking a look at PUMP’s performance in the last reported quarter. In the last reported quarter, the Midland, TX-based oil and gas equipment and services company reported an adjusted profit of 3 cents per share, against the Zacks Consensus Estimate of a loss of 12 cents, driven by disciplined cost management. Revenues of $271 million also marginally beat the consensus mark of $270 million. PUMP’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one, delivering an average negative surprise of 17.21%. This is depicted in the graph below: ProPetro Holding Corp. price-eps-surprise | ProPetro Holding Corp. Quote The Zacks Consensus Estimate for second-quarter 2026 earnings has witnessed three upward and no downward movements in the past 30 days. The consensus estimate indicates year-over-year earnings growth of 85.71%. However, the Zacks Consensus Estimate for revenues implies a 7.86% decline from the year-ago quarter. ProPetro generates revenues by delivering pressure pumping and other well-completion services to exploration and production companies, which pay it to help complete and enhance oil and natural gas wells. ProPetro's second-quarter results are likely to benefit from improving completion activity in the Permian Basin. The company is expected to have operated approximately 12 active hydraulic fracturing fleets during the quarter, supported by stronger customer demand and improving completion activity. Higher utilization of its FORCE electric fracturing fleets and growing adoption of natural gas-powered equipment are also likely to have supported operating margins by lowering fuel costs and improving efficiency. Additionally, continued cost discipline and progress in the PROPWR business are likely to have provided incremental support to its earnings. The reduction in PUMP's costs is expected to have improved its bottom line. PUMP's cost of services (excluding depreciation and amortization) is projected to reach $237 million in the second quarter, down 6.4% from the year-ago quarter's $253.2 million. Meanwhile, depreciation and amortization expense is projected to reach $41.9 million in the second quarter, down 3.4% from the year-ago quarter's level. On the bearish side, PUMP's total revenues are expected to have suffered in the quarter to be reported. The Zacks Consensus Estimate indicates a decrease in second-quarter 2026 revenues from the year-ago quarter’s $326.2 million. Our model predicts revenues from the hydraulic fracturing services to be $210.2 million, down from $245.7 million in the year-ago period.  Meanwhile, our model forecasts revenues from cementing services of $30.5 million, down from $32.4 million in the year-ago period. Our proven model predicts an earnings beat for PUMP this time. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. This is exactly the case here. PUMP’s Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is +52.38%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. PUMP’s Zacks Rank: PUMP currently carries a Zacks Rank #2. Here are some other firms from the energy space that you may want to consider, as these, too, have the right combination of elements to post an earnings beat this reporting cycle. BP BP has an Earnings ESP of +3.48% and a Zacks Rank #3. The firm is scheduled to release earnings on Aug. 4. You can see the complete list of today’s Zacks #1 Rank stocks here. BP is valued at $112 billion. It is a global integrated energy company engaged in oil and natural gas exploration and production, refining, fuel marketing, petrochemicals and renewable energy businesses. BP's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 22.98%. Murphy Oil MUR has an Earnings ESP of +10.92% and a Zacks Rank #3. The firm is scheduled to release earnings on Aug. 5.  Murphy Oil is an independent oil and natural gas exploration and production company with operations in the United States, Canada and offshore international markets, focusing on the development of conventional and unconventional hydrocarbon resources. The company is valued at $5.35 billion. Murphy Oil's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 117.54%. Helmerich & Payne HP has an Earnings ESP of +9.64% and a Zacks Rank #3. The firm is scheduled to release earnings on Aug. 5. Helmerich & Payne is valued at $3.46 billion. The company is a leading provider of drilling solutions, offering land and offshore contract drilling services and advanced drilling technologies to oil and natural gas exploration and production companies. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ProPetro Holding Corp. (PUMP) : Free Stock Analysis Report BP p.l.c. (BP) : Free Stock Analysis Report Helmerich & Payne, Inc. (HP) : Free Stock Analysis Report Murphy Oil Corporation (MUR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research