PUMP - Earnings call transcript Q2 2022

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Operator

Good morning, and welcome to the ProPetro Holding Corporation Second Quarter 2022 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Matt Augustine, Investor Relations. Please go ahead.

Matt Augustine

Thank you, and good morning. in participation your appreciate today's call. We today Financial Officer, me Officer, Munoz. is and Chief Chief Sledge, Adam Sam Officer, David Operating Executive Chief With Schorlemer; President and quarter our for Yesterday earnings we released the afternoon, second of XXXX. announcement note Reform. call projections today's events forward-looking or make the by future regarding statements for any covered we expectations Private Please that are on comments our Securities Litigation

and results beyond uncertainties several our are and comparable uncertainties, will listeners actual with are subject the reference can GAAP which in our and measures risk to risks of SEC. we financial to advise risks our non-GAAP measures differ call, our our statements Reconciliations earnings from These Forward-looking are measures. included of control. today's We factors discussed materially release. certain current these to earnings in cause many release directly Also most expectations. filings non-GAAP during review to the

our would session. will prepared hold Finally, turn we to question-and-answer over to call like a remarks, Sam. after I that, With the

Sam Sledge

Matt, We're excellent morning, team. report generated results to everyone. the by excited good and financial of operating quarter another Thanks, and ProPetro

cycle, margin to our remaining Our share to this continues to financial the executing well ProPetro and market focused a prudent to navigate time. to performance is strategy be continues the thanks dynamic improve. way for Major prove entire over as team what during

with energy is at than the the the free a forward have quarter, in the see have view previous crisis believe and liquidity crude production curve, Basin an caused a want we dated and more the forward these markets. important than in global given is pumping shape risk shape of with I curve today accordingly. oil are cycle equity and higher coupled materially particularly oil of cycles. backward remains energy the market we second for manner. view from crude near-term business short-cycle Permian undersupplied commodity issues, in are currently is structurally of prior currently WTI It in risk periods, Street pressure planning to recent moment highlights of energy our state unprecedented the the We weakness the less our investment to It rate the Despite apparent oil of recession is that of on in impacts our crude this, our recessionary our market. crude the supply global WTI that that downturn. in periods Consequently, acknowledge into of Main to American the and risk that which concerns a go Moreover, provide in clear evidence energy we the markets of economy. crude issues, Before weakness North is differs industry from take sustained of confidence high, up demand-side global

for As market. services most bifurcation whole continued recent forward area, American of ProPetro of effectively these where see Tier robust the obvious where an of bring ability at we inquiries risk currently our sophisticated variables sold-out present for a and see of serves. North pricing to for the field -- a pricing manner forward evidence production our priced we X which future services are pressure for and whole remains view demand largest field see premium. reduce and many is service trajectory vintage value the our in of services of others, the deployments. pumping market, This most producers in pressure pumping sector and positive. sector oil the predictable high-priced Moreover, Because the in spot in we is In for our equipment,

quarter since of capacity. Now report proud that this the level utilization Equally team we additional our pandemic. highest fleet to I'm highlights. the achieved per quarter important, any to moving on without utilization the did second marketing -

cycle. in do and has forward fuel striving more strategy day. successfully I'd our dual to more around X of team like we to around converted with conventional our We'll less. as team and a or for the to intentionality the returns-focused thank every optimization and Tier take move third X business quarter. a internal fleet DGB Our continued revised challenge Tier units employees their continue delivery fleet quarter, a second team end X In into to and and approach to taking focus improve our holistic Tier the optimization do the our inward of dual at fuel in efforts

over We end develop in the X units of additional expect fleets quarters our the yesterday, earnings Including this release to to least expected at in Tier five four X to with announced this be expect have of by we year. XXXX. operation further transition in fleets capacity the couple early next of to DGB

returns be fuel look to with a alike. hurdle we confidence the great able proving industry, with to rate. a The valuable continued technology environment, being in operating to coupled that support is costs be repricing. industry our capital reduce beneficial manner. in report is levels customers in to return also forward team ability our to gives time achieved and discipline that gas lower and our on in were current amount a and reasonable a the minor and mutually our in Our this of repositioning supports This to delighted greenhouse customers sustainability mid-cycle to quarter shareholders We're above emissions pricing of our investment

gaining frac significant electric electric future to in play the Lastly, solutions a want efficient providers the Basin. of plans the Permian demand I role to comment ProPetro for is momentum and that from

David resources. an to team to over financial the participate I'd like in quarter electrification the oilfield. solutions assessed We and with to industrialization directly XXXX, putting electric capital to offerings the discuss company Basin track multiple of electric plans deploy turn in David? have our our With a position Permian in second our and therefore, to and performance call that,

David Schorlemer

everyone. good Sam, morning, and you, Thank

During quarter. largely is the $XXX fleet of team's our quarter, in attributable generated net and $XXX we outperform to of to million additional XX.X% increase increased million the generated increase for The customers. utilization revenue, revenue pricing from ability our gains, a second the consistently first

We with our expected of more pricing revenue since month and also had in this XXXX forward. improvements July February quarter in highest going

the Our the effective fleet from quarter guidance above our quarter. utilization prior fleet to coming was to fleets increased utilized fleets, for which at the XX.X second XX.X X% XX.X during prior XX.X% in

half is to XX range XX Our fleet guidance for second a effective utilization of fleets.

to disciplined Sam As our continues approach pay we mentioned, and capital off. believe

past friendly line excluding equipment million asset additional fleets. services, any achieved disciplined without by the of versus was depreciation increase the quarter growth healthy and installed We end deploying team first top foundation higher the and Cost by two levels to the labor impacts, sequential in a higher $XXX the of amortization quarters company and year material have line including inflationary activity for driven shifts we've of a ESG $XXX forward our with first the this again currently in our base This and percentage and propel that XXXX. ProPetro as million will quarter, costs. bottom for at

million driven income quarter the in a for net the XXXX with second the or million financial of $XX in was nonrecurring of $XX or per first million share. loss of quarter company million DuraStim to quarterly of million and recorded connection relating administrative by nonrecurring of of million our noncash the to quarter. of posted was The primarily and was as income to net $X.XX and $X.XX $XX noncash per share net $XX first expense second The excludes and $XX our process. expense general impairment million loss quarter Adjusted equipment, part evaluation quarter. $X the diluted items. review our compared in compared $XX $XX million loss Second G&A Depreciation diluted

the of the rising activity increased adjusted economic residual and Operating million quarter, the the with XX% equipment first also While sequential excluding at from $XX in of for impairment increase quarter, to value $XX an repositioning, gains, representing the the evaluation. increase or impairment, we XXX coming of we further quarter to point $XX for was time, appropriate, Adjusted continued million $XX supply determined expanded compared The remains sequentially quarter. in issues. may increased with basis while pricing XX% our first and the EBITDA equipment increased Margins of other again fourth consider by just XXXX. books additional chain and revenues second EBITDA income, offset the an over XXX% a million at on primarily fleet million. approximately over partially appropriate cost was to attributable inflation being

in fleet $XXX operating gives to over least on focus million, cycle from the year. paired the this full a returns of XXXX of form fleet quarter Our expectation to additional EBITDA XXth operating achieving increase us across full a at active last XXX% of steady our leverage in year fourth confidence guide and year, with cash-on-cash

DGB the $XX $XX of plan on units, upgrades, the due figure we and with or the disbursements. incurred of projected to the used remaining $XXX dual million, million. This overseas with CapEx cash and positive investing to to between expenditures. quarter of Actual Based was capital in million number statement differences maintenance second flows, activities, CapEx. spending with capital cash expenditures our flow approximately Of outlook predominantly our additional quarter, levels timing for cash to Tier year is amount, fuel on balance that in ranging from million During purchase guidance million incurred Tier CapEx in new million. our X $XX changed $X X as related differs was related and shown $XXX full activity

than our confident industry capital gas to next electric the of our higher up transition Accordingly, free XXXX strong offerings, backdrop capital completing XXXX pricing, setting expenditures more our to for and fundamentals cycle, in relative our on we strategy. command reinvestment and lower which year. cash robust meaningfully flow are are to XXXX, desire come Given allocation equipment burning the in in expected fleet company

and in available that and foundation was of our on of execute including total $XXX the Total XXXX strategy As million, support generate this profitability. and at with to remained back our alternatives total also And $XXX under aggressive free. forward. cash direct the second efforts facility. XX, cash gas to for our million, cash liquidity as lower us have in commitment Sam. previously waver not only that, you, call we natural we ESG and but and further stated, the our emissions I'll fleet turn customers, improving our transitioning strong not the strong, company goals end quarter the of note, that year, of will our asset-based debt a June which capital capacity our XXXX, On the from million to of to was and moving sets $XX of turn reinvestment company's credit have liquidity remained Despite position

Sam Sledge

in expansion catalyst David. about X then. same the the an cost very today Thanks, company. around gas meet purchase future paid earlier excited our higher were higher this in with burning continued. provide our of they desire urgent are year additional these year healthy our DGB units achieving are the yesterday a conditions time, that for investment this Market come. The did Tier than demand investments. even and lower seeing today commitment their our significant and their early with can has to handsomely we margin and engines quarters equipment for We're Accordingly, customers' the to lower off emissions. completions of This pricing for should ProPetro better and and thing last this reinforces return We cash-on-cash announced

in Given severe the stages at ProPetro we of energy crude global view cycle. a undersupply of multiyear that early industry are associated are the the long state convinced we oil, of on our the sustained and

is phases For that initiatives like a region. reason, electrification the our ProPetro in committed of critical energy role of industrializing playing the to through next

under for our XXXX. over to high with important demand our our We're equipment Also equipment meet that today is be conversations the to will margin Our reliable is acknowledge customers electric provide and a strategy. sustainable. to existing that expeditiously this it in customers and share deployed working expect market that demand discussed suggests for solution

for to count fleet deployed we returns total achieve we too our entire certain make assets. proper our to project XXXX, early cash of will cash that are portfolio it's striving While for on

in to decades ProPetro oil part an the the of like to the at we secure as across a Basin I'd Permian continue here continue We future. here be value how foreseeable energy chain believe gas to and value across the region in the globe and the will and energy at peers Lastly, one of best are industries We improve is to the along natural proud other producing mention customers that vital to oil across produced of United chain world. empowering sources reliable our States the come. this energy in will we all be and home gas fundamental products, for and most to reliable innovate and and for the with provide that

Finally, stakeholders again like of once and operational I'd performance. through my for it like reliable other to another open to teammates for predictable and We'd thank creating reducing Q&A. ProPetro risk and our safe, now customers value the up quarter

Operator

the [Operator have and electric. good for at fleet. Instructions] are of the assume, guys fuel-efficient Difficulty] you customers, to least you so put [Technical But I on. you Sam, one sixth seeing fleets me some DGN value work – the really

in terms DGB beg does like it and the fleet what's ProPetro So the in legacy. of electric optimal mix question

that on too/ and timing just opine you If the could

Sam Sledge

Sure. That's question, John. a fantastic

is portfolio right most into term. given the what we we on we about these right really mix term answer orders we're for what the different on think we've our next good the going feel feel think dual basis, recent is electric on year. a side what and side, is long placed the I the working on, we short think slightly short-term fuel mix And and

very agree hard, our can't the I recent conventional most not what's order think equipment markets the Tier that optimal. we find of very I solutions. And given next-gen space, also equipment some effectively is finishes this the say X off these competitors of going you'll its of diesel I placed we in think utilized. is the on mentioning from many fully without diesel-powered that kind if on pull think that differentiated of mix

we're positioned So where we there. feel really about good

but the a it Just a term, Is comment don't years, X John, be to participant lot and I there's as gas or equipment what go frac natural XX years long going frame on a more into know equipment. frac time to of future through we is? the in burns the today brief term. be gas we're very natural ProPetro And medium long positioning that right

Unidentified Analyst

you pump And for DuraStim, if might could on any? me Adam. color But over. I where Just what is just technology there potential the another the any work And know, turn the use one more this on the guess be vertical application or it down? for and of I'll asset frac

David Schorlemer

either. fleet now, Tier right focused we really John, and no, past, no, mentioned say. converting wanted I for focus Yes, But in though, know, equipment, into the back not gas I our the as the I'm on time, but I say to X just the not, would you future our we're margins on would of going that burning getting the on then

Unidentified Analyst

Fair enough.

Thanks, curious. quarter. guys, Just good

Operator

with Scott from ahead. comes question next Gruber The Please Citigroup. go

Scott Gruber

question. I morning. and to dynamic. follow-up good wanted In kind of renewal the to ask of John's somewhat ongoing Yes, a question

one maybe to do $X run, to if to go be out rates Or healthy, on based stay you're But a You the and $XXX into year know, few fleet gas how at laid year. availability? amount, think you know, customer maybe out you long to you'll maybe new about preference, over renewal where year-end two willing you or next we frac renewal it's and fleets in like commit it's fleet order year. every a million DGB do

would program how fleet guys? renewal the of you you kind Just for frame up multiyear

Sam Sledge

question. This is Sam. Scott, great

conversations. and topical out trying this within of customer capital most has today, team based on think here the in allocation. terms our it's that mostly today, I think figure long-term we as about been But appropriate pretty specific to

this to burning in sophisticated pertains Basin from dual So E&Ps customers, high a and the both the very fuel Permian gas we're seeing, seeing equipment. to it willingness burning gas we're contract equipment, as electric,

more term conversations most be specified by into the right led to might So capital around that. to the that - comes of customer equipment more are emit willingness now, commercially bringing those a Long as converting allocation to year-over-year gas more allocation fleet. There system.

Scott Gruber

in as return at for your Got the pay back place, equipment hurdles to contracts meet you. the as it long juncture? and like about are would place way sounds that you this additional think But or order

David Schorlemer

David. Yeah, Scott, is this

at we're going think it to business, way look facilitate that the we this operating is, solutions you lower are think to part be and industrialization the lower of really we that. of know, costs, I costs wanting

that think contracts whether get we really or not I secondary. So is

place our that. we've continue to a in And pursuit done that's the utilizing we're way going and think in for model not going And that I I beyond ProPetro, that that. when we primary think disciplined putting very and have forward do we'll over about think margins you a is think ensuring sustainable long resources that term. the that enhances I

moving market long term, and customer the a dependent as on over things. solution on the technologies really pace So But customers are variety believe the forward, will Sam we mentioned, - term. of these be different conditions, long

Scott Gruber

squeeze Got other the kind spectrum. many How ProPetro to the Tier on opportunity do for competitors spend? you. Tier and the just get more If X. some sidelines? Sam, X could in, strong saw one And reactivation I any we you of, at your fleets you have end reactivate that for idle some nice with pull on mentioned payback reactivate of

Sam Sledge

it investments we depends, sidelined anything varying sense. investment It - to really back get off Scott. as And the of have it requires

of the beginning remarks, XX fleet mentioned year. our a XX fleet think X We've will we that putting somewhat the by created on. program fleet, this scripted into additional continue I right that be in XX since those XX, one execute will we That been the year. fleets the in operating of DGB to system Tier the around be

year. system the market at gives see into So with get into can it's I we XXth the - know today, going we end get minimum, - But think at year. we us going XX we're a what will year. the looking we'll this next into think of next at And a the what we

Scott Gruber

Got it. Sam. I appreciate the Thanks, color.

Operator

from next Jayaram The comes with ahead. question Please go Arun JPMorgan.

Arun Jayaram

Sam, from that it, public the that E&Ps, call frame they XXXX were morning. Good time we saw debundling the offering. in trends their service of was the one starting fact

you're And a margin I starting as frac. frac that ProPetro And so were discount we integrated more compete. you're kind play if providers. a But essentially least bit, well services ancillary to a little on time, of that it privates during given to see just serves think forced pure your this integrated supplier obviously, frac vertically to of you like of some service to is market in the are rising accrued changing feels cycle role to the maybe and at benefits some

So to on get your to just wanted potentially I service where beyond out thoughts expand know, sand for offering your pure frac you heads things. its and ProPetro and

so that? an are And thinking perspective? on what you - What's what's R&D your thoughts about from

Sam Sledge

question, some you the I because cycles prior circumstances I Good bundled the We you very past Arun. of against think of Yeah. the accurately. exactly fairly in described of described. and back peers And competitors and present our were competitive think what

kind We in I we're that I And than as at really, personally about a the have team that through the look ways. of forcing in lens, really we length our different in think right we it's differently opportunities little strategic a And past. cycle bit strong two the evaluate look convictions have now. of that other to

with they're integrate can say, And our I'm site you well out say the different services You integrate talking right services our, let's now. when that about can frac I vertically horizontally. of horizontally,

most from America the more been there's there a said, is lot short a that I well North standpoint, at This That in Basin. the resource in has to than is to by So equipped, for a there most play the look ProPetro past. well-equipped long company - there's my Permian like choose services shot. in a from probably the guess

bundling I in Bakken, it services, East in South look Texas if a So talking think services you're somewhere Basin. Permian say, little Texas than and or bundling about the the might like differently

to account that So we of well. have for as kind

Arun Jayaram

that slide to where wanted of there had I maybe to but kind the a they're the night. my difficult of highlighting and some just gains Slide efficiency stand update go They follow-up, XX, And negotiations with citing, if on a deck nice with answer, question last to an you we from Pioneer. get Great.

a we're So and field. customer with into executing for well it in of Pioneer seems do in the the seeing with some where e-fleets stand like But you key them we as investments higher of Tier move are that? a really mind And you technology in guys mix X next-generation are equipment? as

Sam Sledge

them ProPetro large of ensure is that years, year. Yes, usually, own for few analysts, how pretty Pioneer to of me we've Arun, Pioneer efficiently but operating in going our ensuring by the on it highly team you've towards right their I we'll to pointing when remind in that Sure. do I that historical context achieved presents to We our Pioneer investors or next the think talking opportunities a to in of together, and create arena have will have and we what done efficiencies that played that our and terms and of succeed past lot We're part has value very that. the we're into years of a in. our a way. now definitely offering work Pioneer we're that what But closing leadership the all putting to ProPetro and on best creating Pioneer company plan we beyond. proud interested We're for proud the to done talking in last That we're in equipment, part daily of greatest mutual the And really relationship going opportunities exposing have value. almost people basis in value-creating personally into next as to year. in a that over continue going as few think XXXX there's said, be a a

Arun Jayaram

Great. Thanks, Sam.

Operator

with go comes Syed Markets. Capital The ahead. next Please from Waqar ATB question

Waqar Syed

Thank in give quarter, I something where in is you in and I right? was remember I'm QX. understanding a it missing? last think you understand would And productivity there's and that bumping if XX%. morning. deck around Sam, guys a dip good was XX% slide there mean that you. correctly, presentation productivity it Am our And there I Or now around big if that it's I correctly, your

Sam Sledge

look and just we this I productivity show. think at to. nearly increased our referred consistent pumping when slide the over it, that has with Arun you that is - period Pumping pretty XXX%

think you it looking quarterly. But continues you at versus numbers at and period I when also at we're pretty has to. we're that's our look reflecting The has might shown and what this back productivity be annual So the Pioneer at. looking that by pumping increased significantly are again,

Waqar Syed

Right.

morning For quarter-over-quarter that because purposes our Is onboarding actually then? in we use [ph] models. it Was dip there a assume? to fair

Sam Sledge

no. wasn't. No, It

Waqar Syed

mentioned you describe enough. other then to one What be terms would in it Fair as you or use Okay. EBITDA year whether be you question strong very of like that, happy want cash And conversion percentage strong, or anything revenue flow. of word the with know, define you a you How strong? the of next would free do that?

Sam Sledge

year, look the per could in conversion we XX%. the at and strong. to expecting fleet EBITDA we And represents think me see of cadence that when neighborhood XX% EBITDA that XX% next to I of to XX% we're up

So that's expect of how I kind out. strong play to would

Waqar Syed

then your we've number million total horsepower, hydraulic And using hydraulic That’s of about of horsepowers. terms great. a X.X in been

mostly two, Or incremental now, bringing So number? is correct right the And horsepower? replacement these in it any is that that you're of engines? any upgrades number is number doing all one that

David Schorlemer

is This David. Okay.

me that. Let answer

the been in and things about that had One capacity , we're quarter, down the million X.X investments is know of to in would to removed prior DuraStim available should that of we legacy are the horsepower you so otherwise have that include investments replacing essentially equipment. we that talking we're the this did

cadence full investment haven't to be do we'll our Now for that either. plan We next I growth, about think Sam but out we generate year. fleet talked able for yet think laid XXXX the

Waqar Syed

final And one great. That's just question.

Following the some impairment provide charge, DD&A QX? guidance for could you for

David Schorlemer

call Yes, to is million, right $XX around to million be going that million. it $XX number $XX

Waqar Syed

you much. the Great. Okay. color. Thank very all Appreciate

Operator

question go Gengaro from Stephen comes with next Stifel. The ahead. Please

Stephen Gengaro

Thanks morning, gentlemen. good and

So two things me. for

profitability record quarter what when per said curious about and in of you sort record just of - think it like for be the to are anything think half momentum your is I'm feels and continued first year? pricing, offsetting because talked just there's is get headwinds the fleet, is I of of as you revenue we if we to think in profitability I'm understand trying And into and kind price if beatable. the revenue solid the takes about The versus month. July, just that the about what sort as we And appears puts second guidance

David Schorlemer

Steve, is pressures. Adam headwinds and Sam spoken about this are There that David. continuing and I inflationary have

I receding a those. face but little to to think of that continue those some going we're are bit,

tightness going be of However, is that pricing the demand absorb. on the change in pace for pressures that services and inflationary the supply the greater the that equipment we frac such would we is of believe than side to to have

So I think that we feel good about that.

Sam Sledge

that. Yes, I'll to add just Stephen, Sam.

a pricing what or aggressive approach. X, both. our or particular tried employ to something one of of strategy we chain a the that working more the right be call It's and standpoint get been to margin-over we've a spot, kind meantime, last with baffling from as you XX kind the the very as Over in either their customer in And months pricing up supply unpredictable a from inflation delay do you in month takes and that. pops in it was cost to might

with year. expectations to and So realistic as in prudent hopefully around conservative lesser trying the we're in headwinds in some some But said, yet, a ourselves trying a that the and still to exist just to of may trying be say, kind to extent. crosswinds will to come, that be that I factor David six think months of continue, next

David Schorlemer

your conservatism. regarding question, part last the of Stephen,

guidance I very out and pretty provided minimal you've to typically think is conservative we what around seen be ProPetro that. of try

coming bit a with out full and year. our regarding So we guidance EBITDA more are

is conservatism think something we'd to with. like I So that stick

Stephen Gengaro

commentary. pretty No, you you're just strong the looking may see in looking have confident - remarks. are you that's at contracts X and/or DGBs little in I you bit customer before fleet, you a commitments a are mentioned fair. as thinking about And Tier are build? you demand? when the and there's for the you're prepared fair. the appreciate That's that follow-on, the visibility electric when the When Or

Sam Sledge

of Sam. actually. bit it's a It's Stephen, little both,

gas We multiple customers for the idea as industrialization the earlier of around have earlier to to it David of said, Basin. sector our question and a willingness trying an whether burning mentioned any of in electric equipment, or participate in - the contract Permian strong DGB. be That

Some of is gas equipment natural that cost-effective next-generation solution. more just this burns more

to we that technologies most as the do capital talk tools profile. best best be to to our and So capital the forward, want about brings relevant do our we moving returns allocation allocating to job

So will contracts ProPetro many we it's to gas pumpers like tier do and brings That efficient, be prudent pressure to effective pulling emissions for the that profiles. and to be better industrialization plays that different securing cost top more equipment larger that burning into system going and its be peers think believe for these offerings. we said, of is the we

Stephen Gengaro

Great.

thank Gentlemen, helpful. very you. that's Now

Operator

Instructions] next question Podhaizer with The ahead. [Operator comes Derek Please from Barclays. go

Derek Podhaizer

these contract outlook Tier go spot contracts allow into just pricing around with roll exposure be your roll a market this color you're if address and be year-end? I fleet it Pioneer more pricing as you helpful. would plus could Can your How much you frac, potentially profitability profitability DGB for XXXX the uplift rising morning, good Hey, adding high-grading rates, wanted potential when to little leverage you to the environment. X and back the about could and limiting guys. the off rapidly talk any

Sam Sledge

again. This is Sam Sure.

circumstances extremely to is maybe fix. to confident the people going come. directed addition that, I directed next no most the to think half year look going what but gas years this and about the is news this market structural commentary the undersupply to take units, medium listening - American we going and our year this of oil years think many next so globally, going towards happening the the and even for we towards like to into more and market our long-term is to e-fleets beyond year really the what and around informed back of the dual call, market North broader of pumping field is in we be are in believe is pressure really what We're really more and think to

to the going So tools look into to that. lens with through our best on give as we we top-down company basis, the that work want

like there, extremely it exposure and portion work mentioned You work. is don't of your spot question, that spot our market. an Not something to here do but in small we

usually this for happens XXXX. I they that earlier will. What happened is beyond. from is Yes, So as these thing see make and is it really performance, all the it to the through be will best keep our think the different and here of a part XXXX to bidding of possible. when be today, past, and as We're in way today, We and look interesting figure predictable and of dedicated committed, our Will of as sitting financial right many run June that's tendering is a hard, We going That mentioned November. into year just Pioneer cycles been out. to into you one working that's it that that model customers? season mix yes. that One look believe we're a way that? we direct the businesses from very

had we've So the at it's market fantastic to years my had maybe four months in six we've how history tenure is. last XX ProPetro. we ever that's And a in and indicator And different least operators from demand than tight here the accelerated. the at more of inbounds really of think

ProPetro equipment, think look like at predictable to So close we're our taking every a put we dedicated opportunity model into. plays at that towards our efficient, we that people that

Adam Munoz

that Yes, any Derek, to contract Adam. The with compete as our regardless only next is, would is to opportunity customer cost. to year, going of into I definitely we has look add this thing

looking the hard looking of all mentioned that. We're Sam market as at really sit we in especially today. opportunities, our tech we're So that in

David Schorlemer

Yes. is Derek, this David.

to well. which Just communicated comments, Adam's in chime top of Sam and on they've

best to is going And place owe our we in owe excited from I think well be that. quite and the night. And And it other looking it our shareholders, your that appropriate assets last every think characterized returns. business the actually to we're we to to to I in going team, our development generate our like we're about very be it just you've commentary to commercial. management employees put team

take best and tech in a into to going we've going feel we very year that, this and advantage XXXX. of like the going services latter we're So to think market we've basin be in is half and we that got the proven of what into

Derek Podhaizer

from all Switching peers, air, at still the about down bringing electric $X that that's imagine double high $X up the Is that can maybe you a DGB, it great. X to very see you're thinking few back that That's seeing could number is color. in continue can where for you XXXX. fleet? year frac what of running high-grade If to appreciate your we more It the you're how we bridge I'd million going almost we cut drive you CapEx fleet. to from us could it. but the that are that range in million should address Got still level, I down. folding outlook to over be your a peers? new today to the a Tier help CapEx, maintenance we're to next as like in capital just sounds you that growth

David Schorlemer

Yes, not I recognized and market. something by is This may think you're happening think the be that right. really is

new we converting equipment assets down been DGB, not is on with What today new only legacy payment assets, announced Tier have our additional like We electric. in an X but that, technology.

efficient providing relevant fleet what's So with to where be is along we've we're historically and a frac operators. at that performance recapitalization happening very delivered going I effective the top to think to providers, the ProPetro marketplace, the assets top of

take I those very made prior and be to terms capital in into in So to we're a trending getting as and to overall it's spend, that. able favorable think this of our we that advantage investments year performance going completion XXXX, way of

Sam Sledge

just add I'll Sam. is this Derek, on that. of top

I much as important entire pumping possible. the convert for fix and think cash sector into as space our problem it's be going in as to EBITDA to as well this pressure very ProPetro,

next efforts bear fruit into item. We the like and going to year line will that internal this do intense CapEx maintenance have very year, which something we on think

to in tools more equipment standpoint. our more from and sector innings We also effective just believe migrate a early to continue that and life business what industrialization technologies efficient, the call are that to our I cost of we're and the of

part a the to So we're do really and equipment been XX we'll pressure excited to in be that, really, significant continue look so. hasn't to innovation last Because maybe there playing or years. change in pumping

take investment maintenance something make we CapEx So much get competitive significantly us more where and right, sector the a it do compelling. offering the like the will can and rationale minimize and to equipment while

Derek Podhaizer

generation you looks then And great. new more different ask about And to That's e-frac you if some if DuraStim. can the offering, I what than squeeze I want on us you maybe sold specs it one or your techs can to turbines give like? your is in. about it Will How secondly, year? necessarily could. generation go those you know not starting as space oilfield Or be third-party you previous ready. I the you using power as side, next will e-frac ownership? the be considering service power that into are a start power

Sam Sledge

to e-frac some you that stay first offering, your tuned we'll about more I on We're on be things tell soon. the working question able hopefully around I guess would say I Sure. guess there.

learned very it's really On dependent. what the it's side, think geographic I is and that - customer power we've

make our of best the we option. that there side bid remain have flexible, work currently strategy on purpose So all options our e-frac the is study out the with and to sure power customer to

of of things could a it So for a be different couple us. little bit

Derek Podhaizer

Got you. it. Thank guys. color. Good Appreciate it,

Sam Sledge

Derek. Thanks,

Operator

session. would This remarks. Sledge, Executive to concludes Officer, back I over to like conference turn Chief our for Sam any the question-and-answer closing

Sam Sledge

Thanks, joining thanks, Andrew, on for everyone, today's and call. us

in globe. and day. again remain our are talking talk next us enjoyed with proud a we today to to play you quarterly everyday energy Have we to earlier, an our the mentioned to soon. call. earnings critical industry We innovative Please join where I and As great a hope part you very oil gas lives on across

Operator

The you presentation. attending for today's conference has now concluded. Thank

now may You disconnect.

ProPetro Holding (PUMP) 3 Aug 222022 Q2 Earnings call transcript