ProPetro Holding reports Q3 EPS ($1.32), consensus 4c

Reports Q3 revenue $360.9M, consensus $364.74M.Adjusted EBITDA of $71M was 20% of revenue and increased 8% compared to the prior quarter. Sam Sledge, Chief Executive Officer, commented, “ProPetro’s third quarter results reflect our team’s success in advancing our strategy, even in a turbulent market environment. Thanks to our decisive actions and despite moderated customer spending and activity levels, ProPetro delivered strong financial performance in the third quarter, while returning capital to shareholders and capturing additional market share. With three FORCE electric fleets in the field, a fourth and fifth on the way, and plans to order and deploy more electric assets, ProPetro is meeting the growing demand for our next-generation services and solidifying our leadership position in the Permian Basin. The Company’s strong financial performance, driven by our investment in industrialized equipment solutions and services, is supported by our commitment to operational excellence and financial discipline. In 2024, we have proven our ability to execute our strategy and are demonstrating the tremendous potential of ProPetro.” David Schorlemer, Chief Financial Officer, said, “Our third quarter results are signaling continued reliability of financial performance in our business. While short-term working capital headwinds impacted free cash flow, Adjusted EBITDA less our incurred capital expenditures remained strong. Additionally, revenues and Adjusted EBITDA were favorably impacted by improved utilization and cost management despite unfavorable weather delays during the quarter. Capital spending remained low leading to a reduction in our full year capital expenditure guidance for the second time this year. During the quarter, we also recorded a noncash impairment expense of approximately $189M on our Tier II diesel-only hydraulic fracturing equipment. We view this impairment as validation of our strategy, including our decision years ago to begin transitioning our fleet towards next generation gas burning equipment.”