PUMP - Earnings call transcript Q4 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and welcome to the ProPetro Holding Corp. Fourth Quarter and full Fiscal Year 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 for ProPetro Holding Corp. Please go ahead.

Matt Augustine

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

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

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

Sam Sledge

Thanks, report Matt, operating and entire strong with a ProPetro morning, for growth. and great ahead joining the future a another Despite for closed year ProPetro. quarter the environment I'm proud for Thanks year strong us challenging for today. good our out to industry, everyone. clear path

results, cycle. oilfield to we to our continue yield continues and is and business service the Our both profitable approach strategy to demonstrate how sustainable industrialized through

intact, again our is designed. and to free shutdowns, ability model fourth quarter generate once working extended typical was that remained customer flow the impacted holiday high-efficiency as seasonality While by capital-light, cash our proving

stronger of transformation with to assets our prioritize demand the on gas made emissions fleet offerings, company, our our Today, and dual-fuel capital align allocation These strong approximately utilized equipment, of efficiency, ongoing in business focus highly evolving turn including IV Permian the the the disciplined has XX% macro ProPetro Tier cost and operational continue burning of next-generation be to trends strategic year consists better customers needs efficiency fuel reductions. more fleets. service our in which savings resilient and over past here has customers spurred Basin. as next-generation in of and Our electric and and

our provide in ahead, operating These of fleets under a fleet FORCE for contracts with stability a environment. electric we deploy remains future XXXX Looking to four and uncertain our similar a what expect remains contracts, growth under and in structure. derisk electric an FORCE are key earnings fleet to long-term fifth us, FORCE area designed market

Additionally, our our cementing, contributing continue sand to Silvertip company's succeed, overall AquaProp and to businesses logistics financial strength. Wireline

service seasonality across of all service bifurcated the impacted quarter, the fourth was offering. in utilization lines our by resilience encouraged are While we by

service, relationships continues high-quality Our from differentiate us strong our to equipment and peers. best-in-class customer

cost Moving on we to several earnings providing the last forward years, American while direction about onshore North in such services next through offer XXXX, into and like savings overall strength customers providers which call, the as quality our potential remain particularly also as ProPetro, moves lower avenues the efficiencies. market fuel as and of the I the enhanced oilfield of over mentioned optimistic

demonstrates fleets. this has the activity of approximately We as Basin arena. and is XX% full-time around this brands. believe confident This leader our of and market. state Permian XX held the by seven operated largest the positioned a We pressure internal are ProPetro healthy in consolidated is frac according that the estimates, pumping that Moreover, top to active

providing like and for operational Our top-tier to capital discipline has years pumpers leverage over pressure several contributed past stability, ProPetro. the commercial this

growth additional initial majority generation opportunity equipment the an XX between of we anticipated finalize megawatts believe early a capacity most exciting developments contracts firmly an The entered plan and megawatts approximately expand of we additional the and December, as that are for power assess into business in place another the total company, a announced line, manufacturer us early our demand to launch purchase was XXXX of provider. establish agreement currently megawatts premier orders of One XXX our capacity in bringing for PROPWR. totaling ourselves we and We newest Since transformational allowing We XXX oilfield for months of with the XXXX. these to solutions a beyond in and as PROPWR to of over delivery ProPetro energy traditional weeks on coming power contractual to XXX XXX generation of XXXX in from natural have future and equipment. our megawatts In order then, services gas fueled equipment, order. second generation customers. half customer for power XXXX, assets represents our

our We high-growth progress believe incoming equipment. capitalize and solutions emissions have We long-term vast for to obtaining low are verticals. reliable, for the are commitments is and made increasing, negotiating multiple in on demand we contracts power PROPWR actively customer positioning and

significant focus applications. proving for in and tried based operations, industrial is completions, and true our drilling, on potential both, concept business on and midstream the initial applications, production oilfield the While momentum power we also establishing including commercial see

center a we Basin. even opportunity particularly Looking the see ahead, Permian in space, unique data the in further

strengths. E&P us data continues infrastructure leading ability meet to capitalize PROPWR. solutions, relationships customers needs make how capitalize establish a we with computing we're to scalable, low-cost of and right operations gas-powered best energy on and power-intensive and with our At deploy natural decisively developers grow, looking for for low-cost partner our deep moving ProPetro, That's Texas. growth on in knowledge operators, region to here existing prospective constantly to core why center West evolving opportunities of demand current are natural we the evaluating can As the

aggressively acutely time, country's that our our it earnings important for significantly and this business will continue note company leveraging hand major time, to the while which for where scale We're ProPetro's expanding aware are we same continue contribute structures. partner we're that core we revenue stability and business. combination most just known. a further cash service At to to PROPWR. on believe a financing E&P will our producers in our profile and ahead, makes PROPWR, basin, is prolific it's our will of successful added Looking to the support what diversify targeted and streams lies, business This beginning and the to creating over overall on focus of providing high-quality we in

those despite David, environment of is maintain To even be are cash to I and what to flow our our turn a to generate challenging the to on flexibility I There has to are in I reflected healthy Before that strong want these it our dynamic in The key want allocation a strategy that we prospects ability macro allocation highlight sturdy generate focused. is afforded the reaffirm commitment discipline result balance to end, which will pursue sheet. us and position capital returns. the we we strategy. in, opportunity elements characteristics over capital pursue that to a X to free anticipate the are

be future which earnings First, scaling our a believe of pillar will growth. we launching PROPWR, key and

remain we high-efficiency services. investing transition, pressure Second, ensuring of fleet pumping next-generation premier low the in our provider emissions,

with and accretive which our during operations Third, our the M&A Permian Cementing aligns focused includes transactions This executing Utah divestiture recent fourth our strategy. portfolio. of quarter, Vernal, optimizing on the

or PROPWR shareholders David opportunist shares in capital we a we businesses, long-term value-enhancing discuss approximately completions In opportunistic million fourth full inception. fourth, pursuing to retired XX since will program, year returning to deployment, of our financial shares value are our now terms deeper. on equal growth. which of our our on In it disciplined our share prudently M&A, and our ProPetro turn between quarter short, have approximately outstanding repurchase we focus and shareholders. over And with consistent focused yet capital through David? under remain I'll results XX% bit for to maximizing

David Schorlemer

Sam, a Thanks, capital from for Xx strategy over XXXX, revenue flow the improvement reduced the to industrialized with capital-light operational the of year-over-year XXXX Basin. our Permian The everyone. in performance in our work. customers cash result of free best million. XX% Despite consideration and $XXX declining our at investments, direct acquisition opportunity morning, optimization we to and by the work expenditures good excellence XX% showcased us our adjusted is and results increased provides ProPetro's ongoing operational and more that

in year-over-year. since our program share $XXX Additionally, have capital to May repurchase we working have XXXX, of capital inception Simultaneously, shareholders. significantly improved we the million returned of our our position

strengths Our underscore company's and unwavering strategic growth our were operational financial unique commitment XXXX. particularly evident to discipline, management in which and efficient capital and funding

the quarter. Moving fourth to

particularly we While third for were capital our adjusted financial the EBITDA quarter flow, when to the strong still decreased free relative less incurred fourth expenditures. quarter, able to considering generate results cash

EBITDA as headwinds we strong and the service our across Moreover, a share market typical business. in result further a take and seasonality to of nature strategy, the our quarter our $XX third million. quarter Net Notably, fourth sequentially loss expense of the in the $XX $XXX million. noncash quarter was full XX% of to and for impairment XX% million impairment loss Fourth generated cash most to industrialized continue continue related faced decreased Cementing. the softness, market of unit. decreased revenues reporting Wireline versus despite illustrating frac the also $XX included and execute adjusted We on to million lines, flow to notably net our we free general goodwill

million operating XXXX, for expense prior fleets of our quarter. line to some lease an Additionally, our with had $XX the although December. we in in In the active related space, there was we white quarter of particularly electric XX fleets hydraulic fracturing fourth incurred guidance,

fleets expect We frac quarter in of XX and first run XX the to between XXXX.

company's capital during during Net million as in $XXX allocation. Moving already in the statement remains for including our with approximately for these flows investments. Capital between $XX million capital to be the cash for are position will capital cash cash account investing our and expenditures highlighting were for additional anticipates again, expected allocated million of million. million secured are of a of and Of The million. $XXX the $XXX and to company fourth of strong. was $XX Cementing segments. benefits fourth growth PROPWR ProPetro's to expenditures reduced this, our $XXX our financing on flow to electrification the to hydraulic decision Wireline business shown quarter million. fracturing, to million. businesses, the used activities, XXXX $XXX range million capital expenditures to quarter $XXX 'XX and fleet cash ProPetro's free $XXX liquidity of PROPWR An incurred expenditures full XXXX strong industrialize tailwind year business, generation, The transition completions

our XX, million. 'XX of quarter borrowings was was under million capacity cash at $XXX $XX the December $XX cash As to have service credit sheet been buying liquidity lines, and our allocation the capital million, ABL XXXX, back $XXX total Thanks facility. profile. and liquidity balance of new fleet Total and dynamic available maintaining launching healthy acquisitions, fourth a under plan, facility of pursuing credit simultaneously the the all transforming ABL of shares million, were while successful our end including accretive in we and

utilization year, as is and trend still up. XXXX it showing calendars rates early Although frac signs continue promising fleet fill to is in the our upward

for necessary resources While some business, level effectively these to the a strategies is cash Simultaneously, our our exposure of focused profile. growth committed industry free the we to more capital long-term PROPWR years, dynamic drive to particularly us discipline in machine completions our flow encouraging, an several last the has on sector, rigorous those Understanding maintaining that critical. business. are value are redeploying in strategic success different developments of we we company over remain of to creating a practiced growth, the past pursue have giving

shareholders to strong to environment opportunities. allocation call these pursue beyond. completions the capital both pivot markets in strategy to look the ideally dynamic forward XXXX methodology now our back I'll for to Our turn is We much and that balance ability current our to and market sheet suited power enables over our and the believe and in position, have Sam.

Sam Sledge

David. you, Thank

in presence reiterate despite of uniquely another we with of industrialized nonetheless include with cash growth profile company. Solutions. and Demand flow like we Before to the headwinds, Cementing a more Wet expect along And continue offerings positioned ProPetro transformational as free recent built with our XXXX into a Permian business, strong, grow new our about with the services, my enthusiasm confidence Sand future expanded in to now business. be up, remains assets, We've that and filled we to for success did XXXX, Much on XXXX. I the to wrap service Basin sophisticated next-generation strong Wireline services, ongoing bifurcated frac PROPWR want and market PROPWR. our just opportunities capitalize and and our we year is

will disciplined to our with and strategy, and safely, to execute operating fleet we eye our capital a responsibly. an we scale grow continue efficiently, maintain As PROPWR, always presence, FORCE XXXX, on move through allocation; approach

we up our men possible. to company, Lastly, a each in the teammates faced their our their before brave a I seriously tragically sadly, recently our site. at we dedication inherent you was a women last month, to because minute open to job risks by thank want to the for and take and were it to employee Regrettably hard our is day. working of reminded injured locations another It's lost ProPetro and every Late other. ProPetro Q&A, life and the success mission, of and work that

ask importance at this and your work operator, I and paramount call to it ensure the difficult we'd Our to that fallen our working diligently never hearts that and of the helps With like those prayers. incident continue on you field questions. to the you. thoughts teammate, rely cause Safety both of and of all open their determine Thank now keep we everyone the that of all again. teammates, in to ProPetro, our to ones the are teammates loved that, we energy happens in is very time. provide and with families

Operator

from with Benchmark. [Operator first is Instructions] Hallead Kurt question The

Kurt Hallead

rate, incremental somewhere could front, XXX give how kind that may, Sam I December quick Can of So, to in dynamics growth the about your thinking and want power between XXX And in EBITDA year. you opportunity right? let XXX you're megawatts me specific in it, annualized on being doing team, of with increasing revenue on what on we obviously and just XXX. kind creative have say, back it that, about with to start how honestly maybe not pursuing here emerging megawatts provide? and it right, seeing market an could going just how just an the potentially generation, of a refresher out start run started about power, to But the guys XXX I'm of you power us conjunction thinking on if a process time. over plays about applaud

Sam Sledge

maybe Yes. super for with Sure. and yes, kind David I'll let But about business. on We're in excited numbers of about thanks power some that. of asking chime that. all timing the

like exciting way and bit. that to to lowest David, definitely and several believe to options want that cycles we competitive and the that back market through grow is the about to highest entrepreneurial you this of if not a of leadership we're really earnings and great played and together and timing put the sturdy things the believe that that. it do exploring accelerate don't to It and something doesn't revenue excited can organically. something business. kind know Given But out with grow what make possibly in future. last we're roots cost the our move talk for other it's in very we've we I like value years, little We to this. to have mean things the that's the

David Schorlemer

that to if at you Kurt, show Yes, the be older XXXX Sure. think getting side impact there impact. about orders, on teens. lives per of XXX expect. to think higher These a conventional I that We're And is up some we guidance of our think is think XXX on And a The assets return in equipment. power And range start EBITDA can have megawatts, way spending put look per to the apply then. longer the commercial place. per you our XXXX invested than our going architecture going it's capital megawatt in getting would I I the of $XXX,XXX to business. this year about placing to $XXX,XXX to the to and returns

So, you, there. to should give to X- give be is to payback X-year think, you going expectation going is I payback reasonable a what

Sam Sledge

what it I'd trickling to David only once. these said, this thing we at all start up said the doesn't midyear that show to year. in around deliveries is first Yes. Kurt, add expect just That

midyear what deliveries taking announced of QX year. over So, time year we'll into we've be next starting this

Kurt Hallead

a Okay. on is then larger and at update. the of just Appreciate the already the pressures. some was, talk other companies for these business. business. reported companies timing question do pricing Obviously, follow-up play of frac there higher end in that And And some dynamic frac me have the clearly, operate

So, stable. me it kind struck you that relatively pricing was referenced of that

dots pricing evolving going myself connect business trying and you see to educate just a of the from how I'm see the is So, you and your standpoint? things to things kind on, market for how going as how

Sam Sledge

Sure. important all compare aren't much, sure the trying Yes. when And is too and us. all and we way. make that for Permian, market This to this about oranges it's E&P apples thinking blue-chip always I is think to we're

we're customers. a it sturdy us So, because and E&Ps. can't more the larger, same outlook -- that this be have of the speak that of we about It obvious, the we will aren't of as those with sophisticated more equipment very it year. these from state that to Permian agreements the with have and basins or the aren't to And is customer customers those we very pertains type for things proud types work to consistent and

Operator

question comes John Simmons. The with from next Daniel

John Daniel

remarks, Permian today. Sam, you I in guys think you fleets in mentioned XX are full-time prepared the estimating the

efficiencies that in X other Permian the efficiencies? now and range you think quarters of of than good about be you from else could As a all Basin scenario where you think provide can the stuff, completion equal all continued being maybe X to

Sam Sledge

X way of what some simple to big think X I'm of size ago. X Permian flat that flat, are a as are how you these from they think as you telling I inside fleets, look or type nuance anything know, much than it. standpoint back pretty work you is XX% it's horsepower If say the not the doing? average years, is was in you of larger as fleet the it I the John. But it's know. is don't years But

number, size. So, of were going fleets that be today that and to it'd ago, you if active XX% more years comparable the make to because right try X compare to

end pressure people So, as look, mean, And efficiencies a kind of of a have value stand if bad But bear high I pertains great and up. lot you'll continue we play to have pumping. a where you'll a proposition, that's think always the at story or think work, I can you to always game, make that the of today. efficiency go it we

John Daniel

Fair enough. Okay.

one follow-up quick Just CapEx. for on me the

million I press release in be would the CapEx know in leases there's million, I X? some million like number, $XXX think 'XX to above segment. anything dedicated if I that include $XXX completion I beyond $XXX curious, that ballpark. towards million-ish the Fleet $XXX was And correctly, your and to does is the I'm but $XXX And remember million think 'XX a

David Schorlemer

Tier what No, is does of equipment. it doesn't. But DGB some IV our it include refurbishment

little than got more in a we've we in 'XX. that So, did bit of 'XX

Operator

from Barclays. comes Kim question next Eddie The with

Edward Kim

fleets the through the to run Is expect, that XX of think if first in to right expect year. ask a outlook progression? a to have could business. environment kind for active you said been seeing 'XX end way a use And Most of year? you you're XX that to North talk quarter. Or frac flattish how America in wanted that the what's well? that, rate this activity Just the good this in to kind about related you run market as of the year to about Is your the general for calling you

Sam Sledge

they our relatively starting probably and said, about mean some as John go we in good. with towards more efficiencies fight underappreciated of good these end That there at would just lower pricing the that's I maintaining continue their have will that customers that made throughout I happen market I to along general be that the market, flat get their to continues of think do and have is will the frac outlook bit due like pretty yes, on for have have, market less you for, to attrition ProPetro with likely the things Yes. think we being tighten in a maybe where attrition days kind need comments to to as more think inbounds flat you are having end not and a year. That to side. highest smaller, like equipment that market lower really especially question about over the of fight the job that is to with to Look, and expected place equipment see sophisticated what location. we really on the to market But and the the continue a something see customers the firsthand the is, a balanced level naturally things keep issues company that, I efficiency that's have the that to priced from that that you what very and about other more our at you is time. little in

a for. that's hopeful year year half back activity we're up continues bit. that story that that what the flat going even that, could frac the next quite market out kind market in of play tighten to is So a the into of In

Edward Kim

is Got it. follow-up PROPWR my the on just it. Got And business.

applications, and You will on this business mentioned centers in but that opportunity be of down do line. you initial the data see somewhere that gas the focus oil

with conversations way, towards assume well? centers will data now initial So, as majority we vast put service gas? on megawatts is should the that operators initial and oil are of that having go Or XXX it that having and fair maybe megawatts oil you another or to companies? on are you're say XXX negotiations all with currently that the order nearly gas Or

Sam Sledge

Yes.

a customers even hearing could about the That's should we did we is reasons I strategy And customer's it through is of electricity we needs. way we one have. and our that to the already for the office because without through of many hardly initial assume pass that now. why you did, this think started work main business

excited highly That really on contracts some specific us projects is working So, you'll that that interesting of now, the that's the of about that about I make in confident, kind non-frac an our everyone opportunity right happening see the more said, thing that we're speaks, from future we're applications, and our orders sure likely highly business. these which almost see all we and want initial I diversifying it's adding business more to in to of consistency that commitments. is are understand think, to

think that. midstream, I the working to few very like we're things are things on first related production,

are opportunities capacity. or We or many our the some to electric power entertaining side possibly quite production of midstream our existing non-frac growing demand is frac on the fleets large. But

David Schorlemer

is this to Ed, would encourage at I IR you look our deck. David. Page a in take XX

we're different sector that and one X is for the gas over of here of then just growth you business just growth the expecting the add a power. XX growth X.X trajectory XX, additional load it's Basin growth think on I that, the for oil that It's When that is load so striking to significant. than in of next gigawatts things years the Permian we're the the next years, entire in. over

lot opportunities we an as infusion on that there. of with So, now. see our gas our the routes connectivity leveraging and Sam we we're customers, and right mentioned, oil has Certainly, as that have and

Edward Kim

lot viable end sounds it markets Yes, definitely like of a here.

Operator

ATB next Capital Syed Our Waqar with Markets. question Instructions] [Operator from comes

Waqar Syed

questions. A couple of

QX? in specific more bit little do and see a wanted for for QX and EBITDA you tracking XXXX. guidance quarter-over-quarter how the And Just maybe revenues

David Schorlemer

Waqar. David, is This

to guidance XX activity going fleet and gave. between our the with that to We is believe XX I like be think we fleets. we'd stick

far I think But positive the too we've in of I think guidance so mindful seen early some on providing be activity we much to want year. there.

and that's about to at of to But point. the couple significantly over guidance last the we'd think efforts management I from benefiting we out. like beginning are cost those give really the years, play are that this

Sam Sledge

something top in Yes. looks we XQ just is think Waqar, XQ XQ and back direction the I'll similar to that and headed last of of that. pile on year,

Waqar Syed

Great.

is additional Okay. And then penetration along? Are seeing fleets? acquisition how coming you AquaProp the into

Sam Sledge

when sand opportunities. AquaProp timing great. Aqua we're That time and with growth have continuing Yes. our certain have prices, hindered we peculiar option that come an acquired which integrated quite consider probably best But can market you of of we in our been we're where tell more in market, across I what's crash portfolio. has in fleets of dry Prop push sand was said, some customers the services, a saw wet as the the We're the about I excited some general, seeing efficiencies to and that. what where to Silvertip Wireline that of we with do we're where to entire doing. we do mean,

is story about and offices customers' helpful and into we that as is go definitely proving promote So out talk to that.

Waqar Syed

you Okay. business? And could the Cementing and Wireline your maybe talk about pricing for environment

Sam Sledge

I our of Cementing our business one Yes, the throughout Cementing, spots year think be this recently and in the might company. brightest here outlook the entire

significance but compared You focus the it business. saw in kind to helped that of only Permian in business, we was Permian. to And of announced the divestiture was of that's our very small only, our was terms our Vernal, bolster Utah non-Permian operation, our which

about better rebounded that little So, service we've it. bit a outpost along push pay year. part and year, the year, environment first going that AquaProp I'd a loose continuing to integrated Wireline an with side to evolved approach And of try frac excited this back this pricing this is say fleets in The the to similar more service here looking be but X is our weaker. Permian as year, We're we're to definitely west the last of Par of been our a edition little team. has super dividends with Basin. on half

Waqar Syed

acquisition could how Eagle. How it Sam, that And in Or was the acquiring, E&P made there potentially? does affect to major acquire recently ProPetro, announcement a if Double side planning with Diamondback any?

Sam Sledge

I of we're, Look, Yes. mean, now. sides that deal on we're both right

speak deals I made itself. we and sides are Back efficiency earlier, mean, not and that the on kind think and It's great like Really, that. and providing a on we to both sides I operational for be deal. we're Diamondback for that of of reliability comments that value deal. we at like performance both companies uncommon great price, consistency, like a looking us performance for been of let some of to So,

and in scared of more we're really it next and think overall, then downstream for it's quarter. building decade. upstream to a not Permian. So term, next We some business creates in We're Maybe the consolidation mean, building or it business for the We behavior, I look, rational causes next think the we're month near us. but not a the now the healthy. turbulence every

more sophisticated long-term the eager exists those be upstream the large So, that we'll and rational of serve us, to E&Ps. behavior better,

Waqar Syed

Great. fifth And then what's the timing e-fleet? of the

Sam Sledge

quarter? third midyear Midyear,

Waqar Syed

you entering the Sam, just those operational question. PROPWR you you're trying new How business. confidence a kind can are see or as of or those? you business? my investors' that things like the It And risks. growing pains How operational How risks? business won't have certainly, hiccups hiccups would be into build to do last mitigate give new there Okay. any business, you operational that

Sam Sledge

on great these It's the that things, have, chain Two orders. We're we that question. supply we're about into talking something entrance with already focused our a given Yes. of very made lot. kind we've

to and they want issues build fun are the currently expertise really inheriting leadership business building. culture us Dave and somebody opportunity have is the it. obtaining without and the that contracts the that think to But I that commitments to a the and get things team and to once and are, from else. then have for one, that in from you It's of executing team that confident that in scratch already build Travis the focus bring Next we leave business we two

then at team. that, hard Really building that. we're And you've that excited go work got So, to after execute. about

what business We already to We We the heavily you ProPetro at at we're about go just we're to level supply that the use chain, systems, that think that higher the to have on have best believe is to this going execute field. execute that have personnel, to can and infrastructure. sure currently confident today. make high are And a we're the exists and customers. we of We our existing as equipment the infrastructure. and say already our all one lines already or maintenance of our confidently the company in thing other got within see You've of logistics. another able rely executing going the be to really we ability managing organizations already

David Schorlemer

this Well, David. is

lives, The is frac the electric just it's are what we've have which lower And But stack at the We Today, strategic described. months IR believe field. four fleets been on of operating that that already slide other bringing and the call did Sam on of the capital it top standpoint, extension I'd in you out a another strengths. got we've rationale slide intensity that has is, eloquently ago, going we a ProPetro's doing we there. example talks it about shows that natural in leveraging contract. XX forward longer technology equipment from our really here XX, not in deck, commercial

Waqar Syed

much. very you Thank for Great. That's all me.

Operator

Please " with ahead. Podhaizer from Derek go Piper The comes next Sandler. question

Derek Podhaizer

Hey, good morning, guys.

Sam Sledge

Hi, Derek.

Derek Podhaizer

if maybe you you're to, wanted Just for the could type equipment on of expand PROPWR. ordering

size, are recips, X.X whether XXX turbines, So, XX have around megawatts, maybe follow-up X.X to more it's whether initial kit these you the you the have this obviously you XX. color megs, provide Can megawatts.

more the color type maybe you're PROPWR. build using of Just to kit up that some around

Sam Sledge

both. bit Yes, a it's little of

our megawatts and turbines, was and X initial order X up, recent order is that's most and recips megawatts Our up.

Derek Podhaizer

Got it.

things That's months moving is maintenance on Maybe I evolution them. e-frac over been just shop? the side. in the these on your a on the the maintenance them cycle you've color How Just major like? now? field are the X around the from CapEx for you for you that now while. e-fleets just more some per some fleet color Okay. to them the CapEx question what often in a overall said, switching maintenance look mean, in CapEx How to field these just CapEx for What had e-frac? then And had cycles now, like are conventional looks David like helpful. bringing of XX maybe

Sam Sledge

of Yes. hand-in-hand that it. can we're more David it's in I'd And say, just kind in location, parallel. I I and share think what can like is been you with personally can It's run efficiently than efficiencies better but keep expected. particulars, things The some the operate phenomenal. equipment on you CapEx that day-to-day general, maintenance more operational seeing

as stack in a capital change So, don't that maintenance listed it It our operationally little order stack we've pivoting to last David, generally, I for high seen But if know couple dynamically that economically years. capital definitely successes the second my remarks, in add years. to which the that on say of the business. or between want with last bit been of of first what kind changed on conviction. that allocation In color and in pertaining has of equipment. you market the it's been out competes the in of changes, we priorities is great, because and CapEx. I'd can bit couple little us leaves a the relatively prepared that's up that we've stack of today

David Schorlemer

it, CapEx in aspect times CapEx by on. three Sure. prior a two year from experienced the what's fleets intensity electric end the this year we had previously our at of the beginning four last having in We and we going a such of having we saw is positive went to of years. guidance such and been dramatic Derek, decreased impact the that

complexion the our is forward. to the So going and impacting electric, going to changing just of CapEx toward continuing be maintenance evolve fleet

handle. diesel in I lower the on part engine, many of a or a asset The think moving. fleets intensity door dual-fuel frac of is it, to think electric a you and variable The we're X,XXX II, XX% parts one that a which XX% drive the about Tier moving is box. conventional a components are frequency seeing has with it, replace and CapEx Tier IV major which when transformer

at because you electric moving intensity equipment, and lower shows the about a we of even don't toward further think spinning high sand the kind or have pumping that generator. capital we're back just significance on water now paradigm generator got some the you've the pressure a And power they and of downhole, ends are type harsh just crankshaft it shift the So, there. when

continue time, think we're and seeing out maintenance we already. CapEx going that and our that's that, to over down pull play to So,

Operator

from next question Rice. Johnson Donald comes Crist with The

Donald Crist

of side. in are you contracts on you the kind have question give Contract-wise, contracts? around assets ordering these place? quick on one power do Sam, Any with can working there? you firm color actually Or and indications

Sam Sledge

the said, have have frac say And days any this kind single way opportunity any be set we're we at X a I'd looked at fleet. might we're early exceeds it's and existing With hand Great to That going we've of business, similarly marketing are the question. today, place in order, when where, for our X just very XXX in looking that. We and any known commercializing making kind you asset business, customers the contract you place don't order but same the here. And of our of especially today. to to megawatts you of. on to not thing or this, what capable our might in contracts be talking

on So, #X we'd delivered. competitive the are expect seeing be that where how these that items we'll it supply obtaining not rather of, day lead work kind long many when don't grow, in a many being and disciplined demand of do in to future they're the chain with balancing out assets to have we're as opportunities we're manner in

business, right a standpoint for are years more that's do for years transformational be I'll minimum, able value this consistency or our sorry. kind get conversating to visibility long-term we I'm us if X there's like of is not plus, guys there. to that that X and consistency Given think years or everything outlook. of proposition in expect obtain the all to negotiating at X to kind I'd more. old contracts frac on say about now from equipment. We we add And much create in of our

David Schorlemer

Well, David. and Don, this is

the think customers the opportunities our value we a that add to materially provide for when But we really exciting and is customer our that, at PROPWR might of is businesses, because when the proposition there, that value value significance compelling. certainly for the to conventional I that we proposition Just look greater. Completion it's it's at look

to So, now. as had deployment. the before confidence lot We was expertise the as technology. contracts, of remember, But the This electric we thing in we that support ordered right we've here what right? got the same in We're equipment. on mentioned, X not Sam there's side. And unproven doing PROPWR doing a we fleets before, we're confidence had did any

And so, I the think very is confidence high.

Sam Sledge

going and because our I Yes, growing is thing which at this deployment But is here forefront e-fleets the is will you of don't I likely another this growing power Don, in general. power just play in our to but really the in think consider, the strategy, demand sorry, a stuff. significant got our demand us exciting e-fleet future, think role for

the with we're this towards in that are dual David operations about X in we're of more I between to all big kind need going comes that Like are simul-fracs. and our I be the doing even mentioned And power. consuming later the of half business market. our power going what possibly we're to And the deck. story, investor year we this back mean, contract XXX of earlier, X which fleets of think megawatts for demand These e-fleet fuel and contracts. are of outlined headed on and equipment our today, more frac almost that to contracting

over years, the could story if to it the and you the consistency hill our out with couple service excited what look and contracts, could e-fleet our game-changing that as we've that. we the business be we of Super and bring, pertains think fuel with the market. long-term this in So base pair XXXX asset oilfield dual progress beyond you of that under contract business which a into in kind going last in of the seen about power of majority is

Operator

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

Sam Sledge

about today, I a and talking us company joining to bit our for story. to soon. everybody, us letting tell you again our look Thanks, forward you little

Operator

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

may now disconnect. You

ProPetro Holding (PUMP) 19 Feb 252024 Q4 Earnings call transcript