NYSE:PUMP
ProPetro Holding Corp.
ProPetro delivers essential energy infrastructure services to North American oil and gas operators with a diversified portfolio of production enhancement solutions.
Key Metrics
Investment Thesis
Bull Case
Investors may view ProPetro as an attractive turnaround play given its strong operating cash flow of $231.6M and healthy current assets of $326.7M relative to liabilities. The company's essential role in energy production provides a defensive moat if commodity prices stabilize, potentially unlocking value from its $1.29B total asset base. A rebound in oil prices could quickly reverse recent losses, leveraging the firm's existing infrastructure and skilled workforce.
Bear Case
The volatile earnings history, including a net loss of $137.9M in 2024, signals significant business instability that poses a risk to shareholder value. With current liabilities at $253.0M and a retained earnings deficit, the company has limited financial flexibility to weather prolonged industry downturns. Revenue decline over the last two years suggests a structural contraction in demand or pricing power issues that may persist.
About ProPetro Holding Corp.
ProPetro Holding Corp. operates as a provider of energy infrastructure services and solutions, primarily serving the oil and gas sector with a focus on production enhancement and operational efficiency. The company generates revenue through specialized contracting, equipment leasing, and technical support for upstream and midstream operations across North America. With recent annual revenue of $1.27 billion and significant capital expenditures, the firm positions itself as a critical enabler in the evolving energy landscape.
Analysis
Management Discussion
Despite a challenging net income trend showing a swing from $85.6M profit in 2023 to a loss of $137.9M in 2024, ProPetro demonstrated robust operational cash flow of $231.6M in the latest period. The company managed its balance sheet effectively with ending cash of $91.3M and minimal debt repayments, though the retained earnings deficit of $68.0M highlights historical profitability challenges. Revenue contraction from 2024 to 2025 suggests a cyclical downturn or strategic pivot that management must navigate through cost optimization.
Industry Overview
The energy services industry is highly cyclical and closely tied to global oil and gas demand, with companies competing on price, technical capability, and speed of deployment. ProPetro operates within this competitive landscape, offering non-drilling services that are crucial for maintaining production levels even when exploration slows. Industry consolidation is common, presenting both threats from larger competitors and opportunities for specialized players to capture market share.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $1.28B | $1.63B | $1.44B | $1.27B |
| Cost of Revenue | $882.8M | $1.13B | $1.07B | $968.2M |
| Gross Profit | $396.9M | $498.6M | $378.8M | $301.0M |
| Operating Expenses | $399.5M | $368.3M | $545.7M | $294.6M |
| Operating Income | $-2.6M | $130.3M | $-167.0M | $6.3M |
| G&A | $111.8M | $114.4M | $114.3M | $107.6M |
| Stock-Based Comp | $21.9M | $14.4M | $17.3M | $16.9M |
| D&A | $128.1M | $180.9M | $211.7M | $174.9M |
| Depreciation | $127.2M | $170.0M | $184.9M | $146.9M |
| Amortization | $1.0M | $5.7M | $7.9M | $9.4M |
| Other OpEx | $287.7M | $253.9M | $431.4M | $187.1M |
| Non-Operating Income | $10.0M | $-14.8M | $-2.3M | $1.5M |
| Interest Expense | $1.6M | $5.3M | — | — |
| Pre-Tax Income | $7.4M | $115.5M | $-169.2M | $7.8M |
| Income Tax | $5.4M | $29.9M | $-31.4M | $7.0M |
| Continuing Ops | $2.0M | $85.6M | $-137.9M | $824.0K |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $2.0M | $85.6M | $-137.9M | $824.0K |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $2.0M | $85.6M | $-137.9M | $824.0K |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $328.8M | $310.8M | $292.2M | $326.7M |
| Cash & Equivalents | $78.9M | $33.4M | $50.4M | $91.3M |
| Marketable Securities | $10.3M | $7.7M | $7.8M | $0 |
| Accounts Receivable | $215.9M | $237.0M | $196.0M | $200.8M |
| Inventory | $5.0M | $17.7M | $16.2M | $13.3M |
| Other Current Assets | $18.7M | $15.0M | $21.8M | $21.3M |
| Long-Term Assets | $1.01B | $1.17B | $931.4M | $964.2M |
| PP&E (Net) | $922.7M | $967.1M | $688.2M | $793.5M |
| Intangibles | $56.3M | $50.6M | $64.9M | $55.5M |
| Goodwill | $23.6M | $23.6M | $920.0K | $920.0K |
| Operating Leases | $3.1M | — | — | — |
| Other LT Assets | $1.1M | $128.1M | $177.4M | $114.3M |
| Total Assets | $1.34B | $1.48B | $1.22B | $1.29B |
| Current Liabilities | $284.2M | $271.1M | $222.3M | $253.0M |
| Accounts Payable | $234.3M | $161.4M | $93.0M | $115.0M |
| Current Debt | — | — | — | $13.8M |
| Current Leases | $854.0K | $17.0M | $39.1M | $43.6M |
| Deferred Revenue | — | $19.2M | $11.8M | $8.1M |
| Other Current Liab | $0 | $-2.1M | $7.5M | $6.5M |
| Long-Term Liabilities | $97.6M | $210.8M | $185.1M | $208.1M |
| Long-Term Debt | $30.0M | $45.0M | $45.0M | $105.6M |
| LT Operating Leases | $2.3M | $38.6M | $58.8M | $35.6M |
| Other LT Liab | $55.3M | $108.0M | $69.4M | $58.7M |
| Total Liabilities | $381.8M | $481.9M | $407.4M | $461.0M |
| Shareholders' Equity | $954.0M | $998.4M | $816.3M | $829.8M |
| Paid-In Capital | $970.5M | $929.2M | $885.0M | $897.7M |
| Retained Earnings | $-16.6M | $69.0M | $-68.8M | $-68.0M |
| Total L&E | $1.34B | $1.48B | $1.22B | $1.29B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $2.0M | $85.6M | $-137.9M | $824.0K |
| Non-Cash Adjustments | $182.3M | $248.3M | $517.2M | $194.6M |
| Working Capital Changes | $116.1M | $40.8M | $-127.1M | $36.2M |
| Cash from Operations | $300.4M | $374.7M | $252.3M | $231.6M |
| Capital Expenditures | $319.7M | $370.9M | $140.3M | $186.3M |
| Cash from Investing | $-349.7M | $-384.1M | $-155.1M | $-149.8M |
| Debt Issuances | $30.0M | — | — | — |
| Debt Repayments | $0 | — | — | $3.6M |
| Share Buybacks | — | $51.7M | $59.1M | $0 |
| Cash from Financing | $26.3M | $-46.1M | $-80.1M | $-40.9M |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $-23.1M | $-55.5M | $17.1M | $40.9M |
| Beginning Cash | $111.9M | $88.9M | $33.4M | $50.4M |
| Ending Cash | $88.9M | $33.4M | $50.4M | $91.3M |
Frequently Asked Questions
How does ProPetro Holding Corp. make money?
The company's revenue streams are driven by production enhancement services (including hydraulic fracturing and well stimulation), equipment leasing and asset management for the energy sector, and specialized technical consulting and operational support contracts.
What are the main risks for PUMP?
The company faces significant exposure to oil and gas price volatility, which directly impacts client budgets and contract renewals. High levels of capital expenditures ($186.3M) and current liabilities relative to equity create financial leverage risks during downturns. Regulatory changes or environmental restrictions could disrupt operations in key service areas. The recent loss in 2024 indicates potential cyclicality and margin pressure that could persist if energy demand weakens.
What is PUMP's competitive advantage?
ProPetro benefits from deep industry expertise and established relationships with major energy producers, allowing it to secure long-term service contracts. Its diversified revenue model across various service lines provides resilience against commodity price volatility. The company maintains a strong cash generation capability, evidenced by $231.6 million in operating cash flow, which supports continued capital investment without heavy reliance on external financing.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.