ProPetro (PUMP) 15th Annual Midwest IDEAS Investor Conference summary

Strategic transformation and operational focus

• Underwent major transformation, shifting to industrialized solutions and advanced technologies over the past two years.

• Focused on premier completion services, including cementing, wireline, and hydraulic fracturing, with a strong presence in the Permian Basin.

• Transitioned from a diesel-only fleet to Tier 4 dual-fuel and electric fleets, improving efficiency, emissions, and cost savings for customers.

• Signed a three-year contract with ExxonMobil for electric fleets, demonstrating industry validation and record performance.

• Acquired Silvertip, Par Five, and Aqua Prop to expand service offerings and reduce capital intensity.

Financial performance and capital allocation

• Achieved five consecutive quarters of free cash flow, with $110 million generated year to date and expectations to double by year-end.

• Redirected capital from CapEx to share repurchases and M&A, with $1 billion spent on asset replenishment and $100 million in share buybacks, recently extended by another $100 million.

• Maintains a strong balance sheet and believes its shares are undervalued compared to peers, citing improved fleet age, technology, and cash flow profile.

• Free cash flow sustainability is a key focus, with lower future capital investments expected due to industrial applications.

Industry trends and market positioning

• Oil and gas sector has shifted from boom-bust cycles to a more stable, industrialized environment, requiring efficiency and disciplined capital allocation.

• Industry consolidation and disciplined operators have reduced volatility, making the sector more attractive for long-term investors.

• Hydrocarbons remain essential for global energy, with little change in their share of power use over 40 years.

• Major players like ExxonMobil are reinvesting in the Permian Basin, validating the region's importance and the company's strategic focus.