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ProPetro (PUMP) investor relations material
ProPetro 17th Annual Southwest IDEAS Conference summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Strategic vision and business model
Focused on sustainable free cash flow, tech-enabled fleet innovation, and a strong balance sheet, with over $1 billion invested since 2022 to refresh assets and technology.
Transitioning from traditional capital-intensive models to more resilient, industrialized operations, especially in the Permian Basin.
Diversification through new business lines, notably ProPower, and expansion into power generation and data centers.
Emphasis on long-term take-or-pay contracts to ensure predictable cash flows.
Leveraging deep customer relationships and logistics advantages in the Permian Basin.
Financial performance and capital allocation
Q3 revenue was $294 million, with Adjusted EBITDA of $35 million and $25 million in free cash flow from completions.
Revenue mix: 71% hydraulic fracturing, 18% wireline, 11% cement; completions remain the core competency.
Free cash flow remains resilient despite industry softness, funding growth in the power business.
Capital allocation prioritizes ProPower and FORCE electric fleets, with a leasing model for capital efficiency.
Share repurchase program in place; history of successful M&A to bolster service lines.
ProPower growth and outlook
ProPower launched in late 2022, now generating revenue with 220 MW contracted within eight months.
Secured a 10-year, 80 MW take-or-pay microgrid contract with a major E&P operator in the Permian.
Long-term data center contract for 60 MW; total equipment orders at 360 MW, targeting 750 MW by 2028 and at least 1 GW by 2030.
Anticipates $265–$280 million EBITDA from ProPower by 2030, with high free cash flow conversion.
Expansion beyond Permian, including Midwest data center contracts, leveraging mobility of power assets.
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