ProPetro reported a sharp sequential improvement in third-quarter results, returning to profitability as revenue and activity increased across its completions business and its PROPWR power-generation unit. The company also outlined plans to expand PROPWR’s contracted capacity and said its completions horsepower is essentially fully booked.
Third-quarter performance
- Revenue rose 16% from the second quarter to $355 million, from $306 million.
- ProPetro recorded net income of $13 million, or 9 cents a diluted share, compared with a net loss of $8 million, or 7 cents a share, in the prior quarter.
- Adjusted EBITDA was $60 million, equal to 17% of revenue and up 33% sequentially. Adjusted EBITDA is a non-GAAP measure.
- Cash from operating activities was $46 million. The company used $122 million in investing activities.
- Capital expenditures were $123 million on a cash-paid basis and $171 million on an incurred basis.
PROPWR expansion
- PROPWR generated about $8 million in adjusted EBITDA, a meaningful increase from the prior quarter, which the company attributed to project execution and reliability.
- Power-generation capacity committed under contract reached about 510 megawatts. That includes roughly 230 megawatts under a recently announced agreement with Targa.
- ProPetro said it is negotiating several hundred megawatts of potential data-center business. It expects to deploy more than 500 megawatts by early 2028, supported by scaling existing contracted projects and starting work on one or more additional data-center projects.
- The company said its operating record at a hyperscaler data-center project is helping demonstrate its ability to serve prospective customers.
Completions business and outlook
- Management described demand for completion services as strong and said the company’s capacity is essentially sold out.
- Rebuilding capacity after lower activity in 2024 and 2025 has weighed on margins, but management said improved pricing and better visibility into work duration have supported equipment reactivations.
- Most of ProPetro’s contracted horsepower is due for renewal in the first half of 2027. Management said limited industry supply of high-quality equipment could make the market tighter if drilling activity rises.
- The company expects demand for its natural-gas-burning fleets to remain strong, citing limited supply and elevated diesel prices. These are management’s expectations, not reported results.
ProPetro also posted an investor presentation and commentary on its quarterly results. The disclosures point to two distinct operating drivers: a profitable quarter for the core completions business and a growing power-generation operation, with PROPWR’s stated expansion plan tied in part to prospective data-center customers.