ProPetro Holding Corp. Q2 FY2025 earnings call

• Introduced new Chief Financial Officer Caleb Weatherl, who brings experience in energy and finance. • ProPetro delivered a resilient quarter operationally and financially despite macroeconomic uncertainty, with emphasis on capital-light assets and disciplined investments. • FORCE electric fleet demand is strong, with over 75% of fleet being next-generation, and over 50% of active hydraulic horsepower under long-term contracts. • PROPWR has 220 MW on order, with an inaugural contract executed, and expects to secure long-term agreements for all ordered equipment by end-2025. • Capital allocation strategy focuses on growing PROPWR and FORCE electric fleets, disciplined M&A, and shareholder returns. • CapEx for 2025 Completions business expected to be between $100M and $140M, PROPWR $170M, total CapEx $270M-$310M.

ProPetro generated total revenue of $326 million, a 9% decrease from the prior quarter. Adjusted EBITDA totaled $50 million, which was 15% of revenue and decreased 32% compared to the prior quarter. Free cash flow for the Completions business was $26 million. The legacy Completions business continues to generate sustainable free cash flow. PROPWR has approximately 220 megawatts on order with deliveries starting recently and expected to be completed by mid-2026, with an inaugural contract executed in the quarter.

• Anticipates 2025 CapEx for Completions business between $100 million and $140 million. • PROPWR CapEx expected to be approximately $170 million. • Total 2025 CapEx range is $270 million to $310 million, down from previous guidance. • Activity outlook for Q3: operate an average of 10 to 11 fleets; potential fewer fleets in Q4. • Confident of securing long-term agreements for all 220 MW of PROPWR ordered equipment by end-2025.

• Market uncertainty due to tariffs and rising OPEC+ production leading to more idle capacity than anticipated. • Weakened price discipline at lower end of market among subscale frac providers. • Supply chain challenges for power generation equipment. • Uncertainty in the back half of 2025 and into 2026 regarding market conditions.

Q: John Daniel asked about Permian frac fleet level and service pricing influence?

A: Sledge said some fleets in the market are doing 'stupid stuff', and ProPetro is prioritizing protecting margins and equipment.

Q: Stephen Gengaro asked about efficiency gains and fair value?

A: Sledge said next-generation equipment allows contracting, especially with electric equipment, and they're working on capitalizing on efficiency gains.