PUMP - Earnings call transcript Q3 2024

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Operator

Good day, and welcome to the ProPetro Holding Corp.

Third Quarter 2024 Conference Call. Please note, this event is being recorded. [Operator Instructions] I would now like to turn the call over to Matt Augustine, Director of Corporate Development and Investor Relations. Please go ahead.

Matt Augustine

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

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

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

Sam Sledge

are free we operating of while due on focus however, many we been team, also in thanks industrialized the work market to Thanks, to delivered hard strategic thanks everyone. I'm our resilient, as clear market of our model. our industry, softness seeing and the for question, anchored market ProPetro of environment share. and investments flow to taken, the taking results our has Matt to an generating disciplined generation cash cash pleased next actions same report strong third generation the we Without sustainable quarter. Despite by execution challenging and morning, good are flow some strong, that, the have strategy free our our peers,

year year us exactly ProPetro is the it that. Over you prove are for state we have heard XXXX a that and doing last

future. to over turning as to positive for today the our XXXX. our results. Fundamentally, DGB doing first each of Simultaneously, effort industry we frac into portfolio deliver manage we generation of an rollout industry-leading meet X David FORCE fleet we exactly cash to the financial with that the of the flow IV forward. electric walk strong prioritize positioned it and you diesel are our fleets, going how ProPetro bringing through well me dual-fuel Tier is cash we Demand to services has flow the deployment Let Currently, before in continue of review fleets, execute on August that began remain to next-generation our needs FORCE our and displacement.

hydraulic efficiency and pumpdown reviews providing savings fleet and FORCE an we option commenced wireline FORCE Our are customers and ExxonMobil wireline appreciate with of fleets under our bundled received committed with a electric services fuel which have for also the who we electrification. Earlier meaningful X with this upgrades our contract services. positive year, third from three-year and pumpdown FORCE the fracturing, fleets

year-end, approach. is and fourth market a Looking winding the a believe allocation, to we but leveraging we fourth prioritizing by FORCE continue with fundamentally dynamic exactly derisking future intend we to Tier only a II into XXXX. under investment capital believe We way success, of sustainable also path the is it this electric we equipment fifth are this future fleet do strategy. equipment deployed Not fleets, equipment. And when to requires the down dynamic that of to demands. At by in comes diesel-only and clear of the contracts our the that ProPetro, fleet by expect deployment fleet early be more ProPetro's instead contract transition the ahead our in fifth active and the FORCE to investment earnings

M&A, value-enhancing has strategy allocation execution electrification, and I'm shareholder on and all transition tenets; to fronts. with capital X Our returns X pleased our main fleet

Silvertip allocation what bottom pursue solutions, is allowed Our dynamic as cementing, which to acquisitions top such meaningfully wireline to opportunistically results. mile in has contributed our have market, us the and all line Par and in sand AquaProp strategy last capital Five in

have growth to all in creation. a the delivering acquisitions and Our before a also that of stay We've strategy deploying recent allowed capital value returns. component towards attractive remains investments of FORCE our key ProPetro at us strength and electric to value ahead mentioned our transitioning for equipment, accretive curve while also

of will as we we grow pursue forward, our customers. the transactions remain business profitably our opportunistic to meet strategic needs Moving better and

our electric transition year, in our but more moment and an retired our to moment, additional will Board that returning Earlier to repurchase As and go May of million repurchase total beyond. David underway the and representing we well a approximately authorized ago, approved an to share inception, of shareholders. detail XX.X in acquired look I I plan. has our XXXX XX, with forward mentioned the a announced about $XXX reaffirm of million we XX% shares. XXXX $XXX Since extension you program's outstanding to this our fleet through transition want shares program program is to million capital Company that commitment increase a in continuing into the for and share our

capital ability consistently shareholders. the incredibly returning to return our are while to highest We our capital proud to of opportunities allocate

demonstrate ProPetro's the strength business. successes Our recent of

ProPetro performance strong the between investment and our are evident discrepancy performance our equity results. our the unique in opportunity, the investment that belief that reinforces apparent financial strong is value shares Our in a thesis and

proud strong quarter are we without and not we quarter While challenges. its continue generating the put together to was the of our profitability, ability

market see competitive, that of our frac pricing business across part diesel-only and some to portfolio. wireline putting softness remains conventional on pressures the continued Our

bad resulted in saw July than more quarter quarter While anticipated. third the Permian, particularly had the impact uncharacteristically some August. roll a through second storms weather greater This in and events, the actually

bifurcated quarter, proved be did we second to I'm pleased resilient. across softness to in our Although offering see like much that the sector, our report

remaining performing market in high rig excel has and highly our of Dual activity the Fuel Our a Tier to equipment as face business cementing our market. IV declined. share Moreover, and utilized Electric softer and buoyed business, continues capture

quarter the I of in A very success proud is were our we highlight capital those to relative another reduction, clear ago strategy, guidance, of our about few and achieving and achievement to I'm years in expenditures. our Another CapEx want objectives. surpassing

We spending expect strong to cash capital free future. the generation to into support reduce well flow

through Looking ProPetro we fit well briefly ahead, broader in results the and touch we our in deliver financial year to remain our to that balance this to of ability now at and confident future. I'd like into how on strong outlook industry the outlook.

capital we headwinds and we what industry. taking that service immune on Therefore, to not which controlling flows a are, discipline protect macro from quality are We Everything balance focused sheet. facing of our we course, that. just the can, includes strong ensuring else actions to while maintain decisive

of works Our goal the sector. provider completions consolidators the the is E&P that for to become go-to

M&A, future mind. we So, will mentioned an keep looking at I open always as earlier,

to Our that businesses our focus additional in this without increase commercial area free offerings provides will sacrificing cash competitiveness be scale on our that generation. value-accretive through opportunities M&A flow

also which also we the things the services through and customers optimistic over forward, oilfield direction enhanced the years, while of offer moves American as fuel several like North like of onshore in potential Moving strength ProPetro, next providers savings the costs providing market particularly lower efficiencies. remain to about

We this in as arena. are confident that leader ProPetro is a positioned

customer distill about blue-chip and we and David, I to it it's team, if the where confident can strong, points, base are turn we match. key into with future have we are today deep, why this; achieving our I Before are excellence pursuing the first, and best-in-class over X operational to

garnering and finally, financial with that positioned discuss shareholders pursuing while sheet, well Second, for eye inorganic and that, high to contracts our future with value an environment. David a a future, earnings, over our to the towards underway third demand resilient opportunistically liquidity, clean turn accretive transformation balance our derisks electric I'll results. in healthy a David? strategy to is and we deliver organic the call growth. With quarter are And

David Schorlemer

Thanks, everyone. Sam morning, good and

You what at they are understand morning, has to repeated this important but few may hear transpired a ProPetro. things

market we quarter, nature persisted, and to although mentioned, returns continuing the sequentially while the Sam EBITDA to As third business strategy. continued increased we our strong Adjusted advance of industrialized and showcase generated headwinds in our

the versus less $XX non-cash capital $X market to conventional weather In the Tier share along impairment the cash X% adjusted with second X% quarter excluding II of grew was million, quarter, EBITDA the our loss across wireline Adjusted net was second quarter $XXX to net headwinds equipment $XXX diesel-only meaningful expenditures of softness increased impacts and expense million, to short-term income increased in we $XX capital despite loss remained million Permian. Revenues impacted net the XXXX. third free an strong. While compared million million. EBITDA adjusted sequentially flow, offerings adjusted working in incurred and

$XX as expense lease for operating an of prior in million our fleets quarter. the quarter incurred to we to the million electric Additionally, related $XX compared

we from was represent $XXX of we to fair the related resulting to Tier an frac associated which end decision quarter, necessary the services diesel-only lower thorough preference written significant that incurred was impairment the After driven being in away During and This a conventional II down expense II concluded equipment. a Tier million assets, in market. value. by analysis, impairment assets units diesel-only shift pumping of customer non-cash our

the active which normal Moving them of These and Tier represent diesel-only fleets, few out more to assets, phase investment environmentally-friendly in assets plan the course in forward, be XX% next favor decommissioned our we alternative gradually will over cease our technologies. in capital II years. of approximately

XX third fleets active, our in were prior which the hydraulic was total During a guidance. quarter, with fracturing of line

run of the to XX expect active quarter fourth in We fleets XXXX.

at the reflects the fleet, For relative operate in plus this market. or the the resilience we've continued for level, and one business our our to fleets XX to fleet demand last months, minus which

during and fleet $XX the FORCE Net activities were investing on capital million cash to electric cash of was primarily hydraulic as for shown equipment quarter statement program, deployments. capital related the which support XXXX fracturing Moving expenditures to million, our in maintenance quarter. used of flows, $XX incurred for the were third our

we transition tailwind a testament generation success is capital business. demonstrated this cash for and of optimization fleet reduced of to spend the As our have strong a and year, our

year-to-date cash prior our team, this XX% million lower by second $XXX CapEx are for versus the we full prior year-to-date guidance million from to $XXX year the million. outstanding range recent million, a with between Due time most period. to $XXX year fact, of reducing guidance $XXX our work of to is In the down down our

call, strategic chain so initiative OpEx results we're improved our committed Today, a what mindset lower team have play-out with intensity seeing far right What exceeded reduced spending achieve study which can and at ProPetro capital costs the supply on operational case and to the is processes these that I resources. our was we're expectations. the combination of the from in savings. mentioned benefiting CapEx more supply chain and yield strategic beginning last discrete and On discipline a with

are We our now in these drive integrating processes. deployments enterprise greater best-in-class to systems business with even efficiencies efforts our

we industry a continue to Given stagnation, face environment. challenging

position However, remains cash liquidity ProPetro's and strong.

XXXX, of under As at ABL including million total $XX third XX, cash XXXX credit ABL cash the Credit of was liquidity the Facility the million. available million $XXX our and Total borrowings were capacity and million the under of $XX end was September quarter of facility. $XX

ProPetro's execute our a assets of and associated participating strong also more in declines strategy expect to and transition allows allocation of We effectively balance sheet. our our profile spending continuing further years. M&A generation capital fleets ongoing FORCE to the capital the electric fleet maintaining cash improved more accretive coming cash in in while flow maintenance OpEx increased transformation in free intensity us resulting to drive dynamic

to equates also In to our shareholders. X.X in which approximately it another shares. the optionality since remained outstanding shares of This to million, our the total repurchase capital This the in XX.X third return $XXX to shares million quarter, of active program to translates million the shareholders. brings of XX% we XXXX. retiring inception of retired program, May Importantly, to return number provides share

have remaining current the $XX extends We May authorization to million under XXXX. which

XX% knowing we view began impairment and validation solutions we mentioned fleet gas-burning, as took emissions we recorded As fleets back. to and engage years. teams technologies approximately Tier investment and generation the that to at and this II We units Recapitalizing required confidence, lower our services along a is technologies turn equipment. electrification related drive non-cash with asset We of flows. With our that, earlier, completions are in that winning best-in-class base in a with to next strategy year-end, equipment. industry-leading our these has pumping excess with $X We customers industry was transition deliver of few of cash $XXX bring consistent the durable that earnings our complementary This investment The I over The our the and years actions billion technologies charge emissions of solutions have industrial natural operations of impairment has move last ProPetro's a premium a significant superior this enabled we we back an direction. commercial now diesel-only expect. and lower to strategy field million of comprised Sam. to service believe call toward they few expect heading will decisive will

Sam Sledge

we while favorably capital our you, services energy and impacting before to to the accelerate growth just Thank David have like further and compelling again turning recent said, Q&A, what build we reinforce true is the our limiting on and positioned. our trajectory. thesis David. To to uniquely ProPetro's cash Despite spend taken flow actions generation to space, earnings investment headwinds believe sustain meaningful I'd company

fleet, share our in look you backs, The all M&A our long are pursuing maintaining building a forward strong into and today We to buy sheet we liquidity. transforming have beginning are and results while the just executing the on healthy on future. been accretive and seeing successful balance progress

while We that and coupled us AquaProp density our has portfolio that offerings service the include we flow to differentiates share in operational the pressures our sand Silvertip Permian top-notch solutions. team assets growing the sophisticated, turbulence. helped frac maintain activity services, through confident assets activity has right Basin with have navigate when frac the our market cycle we that this customer even generation wet persist, successfully the stable overall increase free right and are assets, Having bifurcated wireline and and cash market in the Permian next these have fallen. reiterate, in with our Again, us to and been market

remainder Our and optimally disciplined ProPetro we architecture the best-in-class and beyond. that of positioned our also for believe XXXX approach and is commercial pricing support strategy

for the of and also consolidation strategy. quality with as the E&P next-generation confident seamless integration directly underscores in see the consistent are capitalize on We aligning our industry our we need increasing upstream evolution This ability To consolidation. technologies, industrial service with

side be execute for ProPetro whole couldn't confidently roadmap. are team, to the dedication commitment, incredible because we present important the we ask the will line why the that prolific continue to for their prouder you on resource It of able on are Basin, win open that, now winning this in I world. With most you natural are I Finally, here and this I'll Permian this to questions. is and the lead of To ProPetro operator, your team. that and thank we

Operator

comes the begin question [Operator our Eddie session. now Barclays. will question-and-answer We Instructions] And with first Kim from

Edward Kim

fairly the you that at fleets in to fourth of XX Some declines of of to color peers businesses. completion your noted us guiding third on you around some You Could fleets? give quarter. activity the your active fleets quarter utilization are kind more those expect to steep hold fourth their in flat quarter

seeing terms of terms or you're expect what -- curious just So in in what utilization? you of

Sam Sledge

expect X year, of at of as of where the the do usually That we holiday to I bit here a additional bit holidays. handful variable of around especially be said, take We usual hold in a late the and the just crews. think and the few days around those materials, or there each in December, too, might a fleet into our one Christmas. added end stated expect usually, Thanksgiving day good a our November do we of there's in October, is customers end we to of There's a off flat. time-off As unknown sit especially looking count there to

the is holidays. around normal all we So be those seasonality holiday really, dealing crews XX with just specific will active. And

Edward Kim

Okay.

utilization I on fair mean say? based Is meaningful comments. that doesn't declines just sound it like those expect So to you

Sam Sledge

of in mean equipment from total it to small that Yes, that's mean but I a think X I I think testament to from worked first maybe was puts for of your because right? -- fourth one larger should performance team because in down. that each customers positioned the a that's think the fleets right. add or technically baseload days a it's thing to an active is we question, customers operating standpoint, I activity pumped, of our stay many, our of I that if not quarter step definitely not, hours I our the the work position within Where portfolios the that customers. all, our and in us we've with, we're

Edward Kim

And then just duration contract fleets. my follow-up the your is on on FORCE

X FORCE you duration the on Could mentioned You us deploy fleets different And remind what the those X are contract fifth your coming with expect here contracts. with on are X-year months? Exxon is operators. in fourth the FORCE you and FORCE to the the of fleets fleets just

So it X that you'll fifth FORCE fleet correct that deploy fleets? FORCE operators have to different across is by you year, X time early the next those say

Sam Sledge

Yes.

deploy that different think we be across the fifth, I customers. X will once

the So hold term. we'll probably detail on contract

-- for said, That that's regularly information. competitive some think I multiyear of that agreements. we is are aiming

I I basis, on say fit to our address best zoom-in needs. to do our we customer-specific definitely can and best what's an needs customer that. that those them individual do on But think best to for

the and operation of very as going much happy, Operating from we we've my customers are electric seen, expected. come. personal do the more that high years efficiencies to better look is, So and to viewpoint, are in than our as ever far

Operator

with And our ATB next question Syed comes Capital Markets. from Waqar

Waqar Syed

question. Just wanted to clarification more on maybe some get the prior

decline not of maybe there's by QX, you QX. may in So expect your kind quarter-over-quarter impacts revenues -- double peers and in seasonality do QX. what normal you you that of do in mean see to digits some expect weather Where some

where kind revenue of expect you quarter-over-quarter do So change?

Sam Sledge

detail the there. speak to I to let of am some going David

David Schorlemer

that range I mostly operating again, we've overall, got the by low We're this think, there. driven seasonality But quarter. Sam fleets into going as mentioned, consistently through to active just is And the expecting get. normal the you're on end the double-digit

Waqar Syed

And sharply came that how you in And days you cash do quite of payables saw QX payable beyond? capital, and then the -- see in terms tracking declined, rationale we Where that? outflows down that bit. for we your some do working see your what especially was a and

Sam Sledge

Yes.

As some more I working been building position. a supply of we've initiatives, included into goodwill mentioned, strategic have in some capital working of our bit which chain on

at position. last has you base balance asset the working but our not sheet our only over our If XX improved dramatically, look also months, capital

we that something And so the quarter. see during that's did

any that declines and think We and AR are appropriate call in AP other improvements did. a and discounts in something from form the I don't was see that today that, but it, we in minus our benefiting where we're further spot we in good spread, felt structure. that's of are that other in cost ways it

Waqar Syed

going Okay. And outright? any how you expect do your of construction fourth to the X say, and that and to be future economics the in, built? fifth do still think XXXX, or buy first do to that's beyond, leases of terms that you you And fleets in compare those happens let's them

Sam Sledge

opportunity not said good this up of much I gone equipment could would very us giving to stated conviction electric past burns was, second scripted current but about and in is investing equipment slightly fleet like definitely the our that it at remarks. diesel, that adds detail say, Waqar? what as I've book, that, we're specifically the question future investing and has our FORCE very in performing. in look we equipment, year. way which enough for some this in too technically forgot it's over in electrified is that pricing without the comment continue lot, your good. our Profitability our make in to by we up, operating on It's I not we the own the a of and if last

David Schorlemer

Yes.

we're to that appetite mean, there buy, structure something or total to is have mindful additional can think time I good capital going And going some are leases. in really be looking in lease But additional any be we the at to spot favorable we're the that of facilitate and that our that going believe option. there option deploying some most I view, We forward we'll that a take, capital. Regarding we're that's our exists. there

Sam Sledge

We just the need value buy does on overall each We is investment the ensuring that on truly from use about talk to David it what add the what the dynamic versus plans of me, we And additional place much rest our really lease are our as of for Yes. lot word And and a that business can lot said capital fleet, depends lot. deploying from a what that about create to for capital we a my are that business. standpoint. best a on dollar allocation. in perspective, as

kind right just it's act continual dollars and spot. of our investment So a the in juggling balancing put to

Operator

And Daniel the John next comes with Daniel from question Energy Partners.

John Daniels

acquisition forward? ancillary the have Is services. on deals strategy, should trend the the to that been going Sam, expect we several last all tied

Sam Sledge

In general, yes.

think That it's think open in, kind the our general. of of state range in chain. eyes and that's down of is up just the in closing where up the I market, and focus kind think bid said, we're the now. and I the heads closed right given value I And ask

I same and in very to E&P your what to We're eyes think just keeping question, the seen you've inquisitive in general. else our very the been specific we point, about curious open have your space. But with frac for cementing location of a of line, the extremely Five And our has Par with the exception geographic better which expected. more the than is which service well, on been performing us. was expansion deal, thing

exactly Par spread deal, With that been location, some the the capitalize try less to alongside. services exception the we work of the that on strategy of has on out capital-intensive Five and

David Schorlemer

industry. is about we've X I'd a fleet we've in add there to thing our talked the believe lot We like fleet transition. best got the that just

looking the of We Sam's don't is primary assets in areas other to probably of see ours. the our think preference. point, at quality line any I other So service

John Daniels

X dumb are X of Were part X then David, just means doing those with that And that are XX impairment? that are DGB, to X if math, working end, active Tier electric, fleets, Tier my X I'm that the on X. impairments, guy there's

Sam Sledge

Tier asset impaired. entire we was X base that own The today Yes.

assets those And of working. not so some are

Some of Tier circulation, the are was them base in asset impaired. entire X but

John Daniels

just answer from X X final but try then it, not And if you sure Okay. would me. anyways. I'll I'm

got You in fleet electric 'XX. the coming

press just that contracted fleet that to a fleets ordered. and suggests the buying working them given probably sense? not are it's Tier given Is using or more to use other that release Your with Xs today could out swap working the those be Tier plan X the running, any that those guessing I'm be your you if electric, who'd someone keep makes Tier is person X

Sam Sledge

Yes. the I I back retired mean X reference, XXX,XXX of years, just for look excess over in we've last approximately horsepower.

outside of and fifth, opportunity. and business year very into engines So small run maybe a deploy because attrition so That next a can market will a all year, to lot every experience a expanding don't the competitors, many there's opportunities likely but regular attrition see look fleet our happening for these as these only possibly you of line said, of with necessarily long. next flat, our we We units day year, some an be sixth, next in our seventh of attrition. we

think really between fleets for next to and good a realistic I XX view at maybe of the next bump-up fleets us But to is operating year. be XX would outcome XX year. our end

be X most that bring the assets as we of those likely will to conventional replacement X be electrics, So in additional retired. will

Operator

Scott the question And Citigroup. with comes next Gruber from

Scott Gruber

think on we fleet to expense is -- investment trending a where Kind what per of With ending going and should on about legacy frac that maintenance high-grading your how pumps, fleet of Tier forward? basis? your the X

Sam Sledge

deployed the so the maintenance just organization that Down we've the in doing significantly. had electric Down these fleets. almost we've on right-size so shop. We're fleets all our They field. to electric don't multiple as this year much come into maintenance

mindset any really operation don't saying David our want know approach significantly. grows need it's numbers, any Adam changes to there additional down if provide in that or will the as support it detail just and our the I future. that, to structure So it without

David Schorlemer

Yes.

facility, you see walk our units customers experiencing electric of maintenance the surprised in also the I at continuous think I maintenance kind paradigm were that and out the speaks the that around That to we're our capabilities. come in location ProPetro facility think shift pumping wouldn't base. the quite to on Midland providing if and at are here you to

and more maintenance continue the so doing lot favorably. trend is team with think intensity, to I going And a less to that's

Sam Sledge

that's couple trying thing conventional Another engines, think we've our as a of as think a components. across to people of organization of components large a many it add, a of of Scott, bit about to been lot had as important to I some that the years intentionally operation. areas our now for many lot I more, success optimize We've we've, little very we -- in of pertains fluid-ends. on it effort. multiplied the participate large in And instances, life seen these units, power-ends, We've, many of these

work supply able only chain we're of with to CapEx being time the a this with the well. not optimization, tailwind buy operationally, year lot doing as our So to well, our huge how we yes, purchase, OpEx as second us the internally, equation. lots of a benefit from, we of side But the for lower guidance to who but

on, team going here in those to variables different for creating credit the internally of Midland of a lot a Just lot wins.

Scott Gruber

thesis around reducing of was original intensity. part Obviously, that the capital investment

XX, fleets for think with the the kind you ProPetro? and whole about if just the an So out. the of a fleet and of fleet makeup kind glad per provide XX to maintenance And playing layering cementing running number for what's of 'XX CapEx kind as don't and in given be have, hear wireline, the if it's a number you of you want number, provide kind of kind mix all-in able to would maintenance a even ballpark guys you to

Sam Sledge

budgeting look, think, right I Well, now. process on CapEx. Maintenance we're working our

on statement You our P&L today. cash and in can going the see what's flow

pretty we'll So guidance our able growth into ones that the that good maintenance be we might build type versus what for can into we to be things I think which next evaluating year. be that will finance. season get budgeting for The we provide as spend do of initiatives

speaking, deployed. generally that give we'll think some to seeing context. XX%, relative I are fleets new time, But we're being XX% provide to the So us more improvements XX% of some

some So we'll next context on call. you more give the

Operator

the And next question with Kurt Benchmark. from Hallead comes

Kurt Hallead

to loose of in end indicated XX%. context tie here wanted down sequentially just I the your about up maybe you to a be revenues

do be whatever, think million. would decremental $XX EBITDA that $XX that revenue decline about perspective? be an So on in what, the would from What you million,

David Schorlemer

XX%. management. probably quarter, right? how over And somewhere would it in the this to we exactly quarter. think dependent That's that in But that sustain, the But be cost largely you saw over something can not downside, on to plays neighborhood. going neighborhood XXX% expect the attributable just Decrementals we of I incrementals XX% the on out to that's

Kurt Hallead

And follow-up pricing of kind you quarters your kind of year. EBITDA then revenue over fleet crew constant kind in environment. held the of electric and the of past on, up When couple at Sam, last slightly per just a referenced per pretty tough a market gone over you look has crew

that some pricing to the respect class? said us shaping context DGB? of elements how obviously, speaks to you on Can So for your the with e-fleet. asset up Can is same be that give

Sam Sledge

the The pricing mean, continuum. here I think is most explained of And and resilient. I pricing is fuel next just both the that you resilient. on and dual sits it, pricing this call kind most is the resilient everything e-fleet I on least a diesel

that. on depends all as than customer geography, application, of of kind not it dual the but resilient much, it equipment, depends fuel -- hung It's there as has the pricing, pertains to it specific it of e-fleet better been diesel equipment. in kind So our as and much on our

Kurt Hallead

flow Okay. as have And cash it's you a emphasis on generation. continually then heavy free

we know do So use just still conversion, cash think everything kind land? flow But you're that would free were budgets to kind your proxy if I a else. setting you of for and curious, of where

Sam Sledge

over be we'll year, this Well, XX%.

of We to have been targeting kind to XX% XX%. getting up

Next year, range to I good. ought think that pretty be

So let provide do next more work some process, budget us on the and our the context on call. we'll

Operator

from TPH. question next LeBlanc the with And comes Jeff

Jeffrey LeBlanc

on I and could are fleets. wanted if to see AquaProp an efforts into going give just how us you integration frac update your the

Sam Sledge

our acquisition Sure. has had fleets the When earlier few made this already. it year, been Aquaprop Yes, a we great. on of we

market in has as a That And a moves growth as that from we've does the what this change perspective, our what sand seen sand probably not it when -- noise. would the much been we I said, expected that lot seen the bit. our that board. and think point We've year. really fall quite all in of dry hard, the that prices wet my creates across market from does agree

industrial an double it and solutions obstacle So customers creates of most time, back our little what out particular or it a that to and be just location. on for most solution the partners us do wet sand most figure X is the believe that, time still as to therefore, growing sand and economic cost-effective are. We move the location store storage to way everybody and kind us double takes going business. that pertains to pile on and for creating and to bit more It some E&P

into and move long-term, the into next in about feel continue year ability commercially So our in confident fold as that very we the future. to we to

Operator

with Stifel. question Stephen Gengaro Next comes from

Stephen Gengaro

world X if don't medium-term marketed high-quality or guess differentiation? of most do how and And things the a and fleets maintain you at active are you fuel of I me, least is assets, first evolves the dual mind. electric But the as question. that kind are probably from

Sam Sledge

frac comes going now a burning. been several Performance, natural happening where back it a market transition our we're totally almost Yes. is has to is but This say for years changing. -- a late in equipment time really, now, the to to mid industry we're I'd of in into be that innings all gas in transitory right

a in equipment. easily you like So differentiate on with could early transition that,

that As has. always all just like matures, people, a transition it like to back comes it

because not We're day. that. shy to we We that exceed wants with with, every to the our about guarantee our differentiator you e-fleet really an performance just a perform not fuel dual go all to fold easy it, customer that compete that's what think a off displacement. that's and that it ground don't then your on a is rip to but think pushing fleet. And it, that pumping is. certain operating that's say, ability be to a day, agreements fuel above it's copy or safety, do people, our the that's not and or It's something mindset do per of have So key hours into but just

That's whole XX month, a fleet almost pump math a Just recently, days went days, continuously over there straight. the to in of that and a how an anecdote, XX e-fleets pump as on That we month fluid. hours hours a in many do month. are our for had XX that's for moving hours on day X XXX in almost I month. mean,

of keep think and going than we and entirely market. an to more that We few think know doing years, want to differentiating to in bar the the differentiated So for create higher with We work I customers that. manner. that that expect And push us next just we're what's new almost continue don't we're that.

Stephen Gengaro

And I math. just the did

large So that's number. a

the from has The that expect some one, from of kind at through to flat perspective. been quick in high it just pertains XXXX, peers Is the it's general other of as and of from I heard year next you're thinking ballpark just level know that how kind a commentary we've and level, of others it? an a about activity your here kind

Sam Sledge

market think about, into do the be that other I some think year, of to the continue just go on there's we've to likely some given Stephen. call how differentiation year. that that's we next things today, do, to us talked talked going we share the I for grab We opportunity about

into fleets highly XX going next XX, it is year? likely. Yes, So

that you of That year? a of comes. I half think said, there's think I Does you're us, back activity. in of the We'll people year start see. the little level should a bit the building the expand We'll I we think lot hoping model what see market on don't if a that. with financial necessarily activity, to our create need significant accretion noted mentioned creating e-fleets, earnings. ProPetro I we stakeholders in amount of of to for top at lot our as here a we're haven't should thing on is just think continue additional value of we a that general deploy be yet that One that.

of I to had profile quarter be going quarter an here that cash in story. I important really of e-fleet. think additional another From you XXXX our a flow as part a think that's the third standpoint, full saw margin we of some effect

David Schorlemer

e-fleets just exiting a relates going that that, had to add a entered really as the company electric new X of we were We Stephen, the to XXXX market. it to top as And X Yes. going the 'XX to into be market. we're really company at or frac. Today,

think that industry-leading with last realized with field enabled to transition that marketplace, us technology I best we're the people. combined that the the of service of that customers the our make really years in couple delivering performance have over because

And going to some proven. that So to we of ProPetro going be is and 'XX. come and what combination It's people that's for, not be into going of for. new going time because a differentiating technology to factor that's think, to be known

Operator

Sean [Operator from Our with comes next question Daniel Partners. Instructions] Mitchell Energy

Sean Mitchell

answered. has question My been

that my Sorry, misprint was part. a on

Sorry about that.

Sam Sledge

week. See you next

Sean Mitchell

Yes. see you We'll week. next

Operator

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

Sam Sledge

meet Thanks, soon. today. you to with for interest your joining Hope company. us everybody, Thanks for in the

Operator

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

You may now disconnect.

ProPetro Holding (PUMP) 30 Oct 242024 Q3 Earnings call transcript