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Halliburton or Schlumberger for hydraulic fracturing services.

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• Hydraulic Fracturing Services: A well stimulation technique used to maximize the extraction of oil and natural gas from a reservoir by pumping high-pressure fluid into a wellbore to create small cracks in the rock formation.
• Cementing Services: Involve placing cement slurries in wells to provide zonal isolation, support the casing, and protect it from corrosive fluids.
• Coiled Tubing Services: Provide intervention and completion solutions for oil and gas wells, used for various operations such as well cleanouts, logging, and stimulation.
• Flowback & Well Testing Services: Involve managing and analyzing the fluids that return from a well after fracturing to determine well performance and optimize production.

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ProPetro (PUMP) Major Customers

ProPetro (PUMP) sells its hydraulic fracturing and other oilfield services primarily to other companies, specifically exploration and production (E&P) companies. These E&P companies are engaged in drilling and completing oil and natural gas wells, predominantly in the Permian Basin.

While ProPetro's financial filings indicate that a significant portion of its revenue comes from a concentrated group of customers (e.g., its largest customer accounted for approximately 25% of total revenues in 2023, and its top five customers accounted for approximately 64% of total revenues), the company does not publicly disclose the specific names of these major customer companies in its regulatory filings or investor communications. Therefore, it is not possible to list the individual names and symbols of ProPetro's major customers.

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Sam Sledge, Chief Executive Officer and Director

Sam Sledge joined ProPetro in 2011 and has served in various roles including Frac Technical Specialist, Technical Operations Manager, Vice President of Finance, Corporate Development, and Investor Relations, Chief Strategy and Administrative Officer, and President before becoming Chief Executive Officer. He holds a Bachelor of Business Administration and a Master of Business Administration from Baylor University.

Caleb Weatherl, Chief Financial Officer

Caleb Weatherl was appointed Chief Financial Officer of ProPetro, effective July 14, 2025. Prior to joining ProPetro, he served as CEO of Garrison Energy. He was also President and Chief Financial Officer of Stronghold Energy II before its assets were sold in 2022. Earlier in his career, he co-founded Stronghold Energy Partners and held positions at Desert Royalty Company, Weatherl Energy Investments, Bain Capital, and McKinsey & Company, with Bain Capital being a private equity firm. He received a Bachelor of Arts from Harvard College and an MBA from Harvard Business School.

Adam Muñoz, President and Chief Operating Officer

Adam Muñoz joined ProPetro in 2010 to initiate its Permian pressure pumping operation. He has held roles such as Director of Business Development and Technical Services, overseeing the growth of hydraulic fracturing operations, and Vice President of Frac Services. Prior to ProPetro, he held sales and operations roles at other service companies in the Permian. He holds a Bachelor of Business Marketing from the University of Texas at the Permian Basin.

Celina Davila, Chief Accounting Officer

Celina Davila joined ProPetro in 2019 as the Hydraulic Fracturing Controller. She has served as Director of Accounting and Corporate Controller, leading the accounting and financial reporting teams, including SEC financial reporting. She is a Certified Public Accountant and holds a Bachelor of Arts and a Master of Business Administration from Texas Tech University.

Shelby Fietz, Chief Commercial Officer

Shelby Fietz joined ProPetro in 2012 as part of the Operations team. He has led commercial execution and customer relationships as Vice President of Commercial, and has overseen the Business Development, Sales, Supply Chain, and Marketing teams. He received a Bachelor of Science degree from Angelo State University.

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Key Risks to ProPetro (PUMP) Business:

1. Macroeconomic and Oil & Gas Industry Volatility: ProPetro's financial performance is highly susceptible to the cyclical nature of the oil and natural gas industry, including volatile oil prices and broader macroeconomic uncertainties. Fluctuations in crude oil prices, the impact of tariffs, and OPEC+ production decisions directly affect customer activity levels and demand for hydraulic fracturing and other completion services, leading to revenue and profitability pressures. For example, ProPetro anticipated operating fewer fleets in Q2 2025 due to hindered customer economics from price pressures.
2. Regulatory and Environmental Transition Risks: The oil and gas industry, including service companies like ProPetro, faces increasing pressure and regulations to transition to a lower emissions operating environment. Government regulations, environmental compliance costs, and initiatives like the Inflation Reduction Act of 2022 could impose new costs on operations, limit areas for oil and natural gas production, and potentially reduce demand for ProPetro's services in the long term.
3. Geographic Concentration and Competitive Pressures: A significant majority of ProPetro's operations are concentrated in the Permian Basin, making the company vulnerable to regional supply and demand fluctuations, oversupply of frac fleets, and intense competition. Weakened price discipline, particularly from smaller service providers, can negatively impact profitability. Additionally, reliance on a few large customers presents a risk to revenue and operating results if those customer relationships deteriorate or if consolidation occurs.

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ProPetro Holding Corp. (PUMP) primarily provides hydraulic fracturing, cementing, and wireline services to oil and gas companies engaged in exploration and production, with a significant focus on the Permian Basin within North America. The company is also strategically transforming towards electrification and power generation services.

Addressable Market Sizes:

• Hydraulic Fracturing:
  • In the U.S., the market size for hydraulic fracturing services was approximately $40.5 billion in 2024 and is projected to be around $40.3 billion in 2025.
  • For North America, the hydraulic fracturing market size is estimated at $38.65 billion in 2025 and is expected to grow at a compound annual growth rate (CAGR) of 8.41% from 2025 to 2034.
• Pressure Pumping (includes hydraulic fracturing and cementing):
  • The North America pressure pumping market was valued at approximately $37.03 billion in 2022 and is projected to reach about $76.46 billion by 2032, growing at a CAGR of 7.57% from 2023 to 2032.
  • The U.S. pressure pumping market size was estimated at $43.58 billion in 2024 and is predicted to be worth around $86.03 billion by 2034, with a CAGR of 7.04% from 2025 to 2034.

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ProPetro (PUMP) is expected to drive future revenue growth over the next 2-3 years through several key initiatives and market advantages:

1. Transition to Next-Generation Fleets: ProPetro is actively transitioning its hydraulic fracturing fleets from legacy diesel equipment to technologically advanced FORCE electric and Tier IV DGB dual-fuel offerings. These next-generation fleets are in high demand, encompassing 75% of its fleet, and are securing committed, long-term contracts that reduce future earnings risk and enhance operational efficiency.
2. Expansion of PROPWR Business: The company's PROPWR segment, which provides mobile natural gas-fueled power generation equipment, is a significant growth engine. ProPetro has placed substantial orders for new megawatts of equipment, with deliveries expected through early 2027, and anticipates a significant impact from this business starting in 2026. The PROPWR initiative targets both oilfield power applications and future expansion into non-oil and gas markets, such as industrial projects and data centers.
3. Securing Long-Term Contracts for Advanced Services: ProPetro is focused on securing long-term contracts for its next-generation hydraulic fracturing services and its PROPWR offerings. This strategy provides more stable and predictable revenue streams, reduces exposure to volatile spot market pricing, and ensures high utilization rates for its advanced asset base. For instance, approximately 50% of ProPetro's active hydraulic horsepower, including its electric-powered fleets, is currently under long-term contracts.
4. Strong Position in the Permian Basin: ProPetro maintains a focused presence in the Permian Basin, which is identified as a resilient and leading region for oil and gas activity. The company's strategy of serving blue-chip customers and its disciplined approach in the tightening pressure pumping market are expected to result in sustained demand for its technologically advanced services and cyclical outperformance compared to peers.

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<h2>Capital Allocation Decisions for ProPetro (PUMP) (Last 3-5 Years)</h2>

<h3> Share Repurchases</h3>
<ul>
    <li>ProPetro repurchased and retired 5.8 million shares in 2023.</li>
    <li>In 2024, ProPetro repurchased and retired 7.2 million shares, bringing the total repurchases since the program's inception in May 2023 to 13.0 million shares, representing approximately 11% of outstanding common stock.</li>
    <li>As of April 2025, $89 million of share repurchases remained authorized. The company increased its share repurchase program by $100 million to a total of $200 million in April 2024, extending the plan to May 2025. The program was further extended to December 2026 in May 2025.</li>
</ul>

<h3> Outbound Investments</h3>
<ul>
    <li>ProPetro completed the acquisition of Par Five Energy Services LLC, a Permian Basin-focused provider of cementing services, in 2023.</li>
    <li>In 2024, ProPetro completed the acquisition of Aqua Prop, LLC.</li>
    <li>The company divested its Vernal, Utah, cementing operations on November 1, 2024.</li>
</ul>

<h3> Capital Expenditures</h3>
<ul>
    <li>ProPetro's incurred capital expenditures were $81 million in 2020, $155-165 million in 2021, $317 million in 2022, $310 million in 2023, and $133 million in 2024.</li>
    <li>For 2025, the company anticipates incurred capital expenditures to be between $270 million and $290 million, with $80 million to $100 million allocated to the completions business and approximately $190 million for the PROPWR business due to accelerated delivery schedules and down payments.</li>
    <li>A significant focus of capital expenditures includes the transition to lower emissions equipment, such as Tier IV DGB dual-fuel and FORCE electric hydraulic fracturing fleets, and investments in the new PROPWR power generation business.</li>
</ul>