PUMP

• Core Completions Business Update

  • Q2 2026 results were impacted by temporary headwinds: standing up a 12th active fleet (incurring upfront maintenance/deployment costs before revenue), unexpected downtime on a temporary out-of-basin fleet project for a long-term customer, and severe June weather across the Permian Basin.
  • Industry consolidation via attrition has eliminated most excess fracking capacity that previously weighed on the market, leaving the market structurally tighter than widely appreciated. Permian Basin active fleet count is ~mid-70s, and management sees very low likelihood of it rising above mid-80s without large, unlikely new reinvestment.
  • Early positive pricing momentum is emerging, particularly for next-generation natural gas-burning fleets, which face exceptionally strong demand given current diesel vs. natural gas price spreads. Industry-wide, next-generation natural gas fleets are effectively sold out, and available Tier 2 diesel capacity is also increasingly limited.
  • Management activated a 13th fleet expected to start contributing by the end of Q3 2026, secured with a new top-tier blue chip E&P customer at attractive pricing/returns.

• Pro Power Growth and Milestones

  • Pro Power has 350 MW of contracted capacity, with an additional 100 MW in advanced negotiations. A 60 MW behind-the-meter prime power data center project is already operational and meeting all performance obligations, making ProPetro one of the few scaled providers with live operating data center experience.
  • While the majority of long-term Pro Power capacity will target the data center market (where contracts are typically 10+ years), shorter-term oil and gas and industrial contracts deliver higher near-term returns, are accretive, and provide valuable execution experience. Oil and gas operators often prefer shorter terms to retain optionality amid uncertain grid buildout timelines, which aligns with Pro Power's flexible strategy.
  • The company has raised ~$1.5 billion in funding for Pro Power growth over the past 18 months, including a successful $690 million 0% coupon convertible note offering in May 2026, with no shareholder dilution until the share price reaches $29.49.
  • Data center contract negotiations are taking longer than initially expected, due to the large size and long duration of these agreements, but demand remains strong and management is prioritizing disciplined, value-accretive deals over rapid signing.

• Balance Sheet and Capital Allocation

  • As of Q2 end 2026, ProPetro held $784 million in cash and cash equivalents, with total liquidity of $905 million. The balance sheet remains strong, with sufficient capacity to fund Pro Power expansion while retaining financial flexibility.
  • Capital allocation remains disciplined: additional fleet capacity in completions is only deployed when durable customer demand and attractive long-term returns are confirmed.

• Full year 2026 total capital expenditures guidance is revised downward to $525 million to $595 million, from the prior range of $540 million to $610 million.
• Completions business 2026 capital expenditures guidance is revised downward to $125 million to $145 million, from the prior range of $140 million to $160 million. The reduction is due to timing changes for planned Force electric fleet buyouts: one buyout ($15 million to $20 million) will be completed in 2026, while the second is pushed to early 2027. The long-term plan to purchase all five Force electric fleets remains unchanged.
• Pro Power 2026 capital expenditures guidance is maintained at $400 million to $450 million, and the cost per megawatt guidance of $1.4 million to $1.5 million (inclusive of balance of plant) also remains unchanged.
• Pro Power is expected to generate increasingly meaningful earnings starting in H2 2026, accelerating through 2027 as deployments scale.
• Targeted payback period for Pro Power projects remains 4 to 6 years.

Completions Business

The completions business generated resilient free cash flow in Q2 2026, despite operational headwinds that impacted reported results. Net cash provided by operating activities in Q2 2026 was $66 million, up from $3 million in the prior quarter, driven by higher adjusted EBITDA and $20 million in working capital tailwinds (compared to a $32 million working capital headwind in the prior quarter). Capital expenditures incurred for the completions business in Q2 2026 were approximately $24 million, with full year 2026 expected capital expenditures of $125 million to $145 million (accounting for 23% to 28% of total 2026 expected capital expenditures). Cementing and wireline sub-segments are bright spots: cementing is growing with rising Permian rig counts, while Silver Tip (wireline) maintains near-full utilization and strong margins.

Pro Power

Pro Power saw meaningful commercial and operational progress in Q2 2026. Contracted power generation capacity grew from 240 MW to 350 MW, adding 110 MW across two new projects (one Permian upstream oil and gas, one industrial customer). Pro Power generated positive EBITDA in the final two months of Q2 2026. Capital expenditures incurred for Pro Power in Q2 2026 were approximately $47 million, with full year 2026 expected capital expenditures of $400 million to $450 million (accounting for 72% to 76% of total 2026 expected capital expenditures). The company has 1.1 GW of equipment ordered or delivered under the Caterpillar framework agreement, with cost guidance holding steady at $1.4 million to $1.5 million per megawatt.

• Macroeconomic uncertainty related to the ongoing conflict in the Middle East creates uncertainty for global energy prices and market conditions, and actual results may differ materially from current expectations.
• Large, long-term data center contracts involve extended negotiation timelines, which can delay revenue and project deployment compared to initial expectations.
• Standing up new completions fleets requires upfront investment and maintenance costs before full earnings contribution is realized, creating temporary margin pressure in the near term.
• Operational disruptions from severe weather, unexpected downtime on customer projects, and equipment maintenance scheduling can negatively impact quarterly financial results.

Q: The analyst asks for more detail on ProPetro's liquidity position, 12-month cash needs for Pro Power beyond 2026 guidance, and how cash inflows/outflows are matched given the Caterpillar framework agreement. / A: Management states no immediate or medium-term funding needs, and strategy/guidance remain unchanged from prior disclosures. Total 2026 capex is fully covered by existing liquidity, free cash flow from completions, and the expanded Caterpillar financing facility: current total liquidity exceeds $900 million, with $784 million in cash alone, which is hundreds of millions of dollars above 2026 capex needs. All previously communicated cost and return projections already account for expected inflation, and management expects these numbers to remain stable. (348 characters)

Q: The analyst asks for early feedback and key learnings from the recently operational 60 MW data center project, ProPetro's first at-scale data center behind-the-meter deployment. / A: The team successfully completed the project ahead of the original timeline, with only minor, manageable hiccups, and the customer has acknowledged the on-time delivery. The successful execution has strengthened Pro Power's commercial position by providing a tangible case study for potential customers, and lessons learned will improve execution on future larger-scale projects. Completing the full project lifecycle (from sales to deployment) for a hyperscaler data center outside the Permian also confirmed the team's ability to operate outside of its core completions market. (367 characters)

Q: The analyst asks for an update on advanced data center contract negotiations, and whether ProPetro is agnostic to deploying capacity between oil and gas/industrial and data center end markets. / A: Large long-term data center deals have seen unexpected delays, but demand remains strong, and management still expects the vast majority of long-term Pro Power capacity to be deployed to data center prime power projects. Management is prioritizing disciplined negotiation to get the first marquee data center contracts right, rather than rushing to sign suboptimal deals. Current contracted capacity (350 MW, growing to ~450 MW imminently) fills most of 2028 deployment slots, and oil and gas deals have higher returns than data center contracts, supporting early profitability while data center negotiations progress. (382 characters)

Q: The analyst asks for detail on the decision to stand up the 13th completions fleet, and pricing trends for high-end natural gas fleets vs legacy fleets. / A: The 13th fleet is the first net new fleet addition above ProPetro's 2026 starting expectations, and it serves a new top-tier E&P customer seeking to upgrade its program quality at attractive pricing and returns for ProPetro. The 12th fleet stood up earlier in Q2 was already planned at the start of 2026. Pricing momentum is strongest for next-generation natural gas-burning fleets, which face exceptionally high demand amid current fuel price spreads and limited industry supply. (289 characters)

Q: The analyst asks how many easily deployable idle frack fleets remain in the Permian, given management's view that active counts are unlikely to rise above the mid-80s. / A: Management clarifies that reaching even the mid-80s active fleet count would require large, unlikely new capital investment, as almost all easily deployable warm/hot idle fleets are already active—fewer than five idle ready fleets exist across the entire basin, most of which are in rotation between customers rather than permanently idled. Little equipment is moving to the Permian from other gas basins, as those basins already face capacity tightness, so the structural supply tightness is expected to persist. (312 characters)