Key Highlights

  • Consensus EPS of negative 0.01 compares with second-quarter diluted EPS of negative 0.07, the same as a year earlier.
  • Consensus revenue of USD 320.44 million compares with second-quarter revenue of USD 305,811 thousand, against USD 326,151 thousand.
  • Capital spending guidance fell to USD 525 million to USD 595 million from USD 540 million to USD 610 million.
  • Contracted PROPWR capacity is approximately 350 megawatts, up from 240 megawatts in the prior period.

ProPetro (NYSE:PUMP) reports third-quarter results on Wednesday, Oct. 28, before the market opens. Consensus stands at EPS of -0.01 on revenue of USD 320.44 million, and the company has a market capitalization of USD 900.30 million.

ProPetro provides hydraulic fracturing and related completion services and runs a PROPWR power generation business. Second-quarter revenue was USD 305,811 thousand against USD 326,151 thousand, and the net loss was USD 8,113 thousand against USD 7,155 thousand.

Estimates Against the Second-Quarter Loss

The EPS estimate of negative 0.01 is above the second-quarter diluted EPS of negative 0.07, which matched the prior-year figure, and the estimates table does not state its EPS basis. The revenue estimate of USD 320.44 million is above the USD 305,811 thousand reported.

Revenue decreased 6.2%, or USD 20.4 million, from the prior-year quarter. Hydraulic Fracturing segment revenue decreased 15.7%, or USD 38.5 million, to USD 207.2 million, which the filing tied to decreased customer activity and reduced customer pricing.

What Management Guided and What It Left Open

Management lowered 2026 capital expenditures to USD 525 million to USD 595 million, with USD 125 million to USD 145 million for completions and USD 400 million to USD 450 million for PROPWR. It guided PROPWR unit economics at USD 1.4 million to USD 1.5 million per megawatt.

Management scheduled a 13th fleet activation for the end of the third quarter and left open the pace of Permian activity, noting the rig count rose nearly 10% from its first-quarter low. It gave no third-quarter earnings guidance.

Disruptions, Fleet Count and Cash Flow

Management tied the loss to a temporary out-of-basin deployment, severe June weather in the Permian and upfront fleet stand-up costs. Total revenue of about USD 306 million was up 13% from the prior quarter, and the active fleet count was 12.

Adjusted EBITDA was USD 45 million, up 23% sequentially and 15% of revenue. Net cash from operations was USD 66 million against USD 3 million in the prior quarter, and free cash flow from completions was USD 51 million.

PROPWR, Convertible Notes and Liquidity

PROPWR has 60 megawatts live at a Midwest hyperscaler site, and a framework agreement with Caterpillar covers approximately 2.1 gigawatts of additional capacity over five years. The company issued USD 690 million of 0% convertible senior notes in May, with a capped call limiting dilution until the stock reaches 29.49 per share.

Total liquidity was USD 905 million, made up of USD 784 million in cash and USD 121 million of borrowing capacity. Caterpillar financing borrowings were USD 130 million, with the cap raised to USD 167 million. The estimates table lists a market capitalization of USD 900.30 million.

Comparisons to Make in the Report

Reported EPS against negative 0.01 and revenue against USD 320.44 million are the headline comparisons. Other markers are the 13th fleet activation, PROPWR deployments and the revised capital expenditures range.