ProPetro (PUMP) The 14th Annual East Coast IDEAS Conference summary

Conference highlights

• Focused on engaging long-term investors and highlighting the company's role in global energy and human flourishing.

• Emphasized increasing free cash flow as a key investment thesis, with over $1 billion invested in recapitalizing assets.

• No net debt, strong performance in Q1, and exposure to the Permian Basin, the world's most prolific oil field.

• Strategy shift over the last 18 months to optimize, industrialize, and do more with less, moving away from undisciplined capital.

• Transitioned from diesel to dual-fuel and electric fleets, reducing emissions and operational costs.

Financial and operational strategy

• Capital spend is decreasing, with 2024 CapEx guidance between $200M and $250M, down from previous years.

• Shift in capital allocation from CapEx to higher-quality uses like share repurchases and acquisitions.

• Share repurchase program expanded to $200M, with $74M executed as of Q1 and an additional $100M added in April.

• Recent acquisitions (Silvertip, Par Five, Aqua Prop) have enhanced free cash flow and operational capabilities.

• Maintains a dynamic capital allocation framework, balancing share repurchases, M&A, and a strong, unlevered balance sheet.

Technology and fleet transformation

• Fleet now includes Tier 4 dual-fuel and electric equipment, with three electric fleets operating.

• Electric equipment significantly reduces maintenance and OpEx, with long asset life and low capital intensity.

• Electric fleet expansion achieved through favorable third-party lease arrangements, minimizing risk.

• Customers value the new asset configuration, leading to competitive advantages in contract awards.