ProPetro Q1 Earnings Beat Estimates, Revenues Decrease Y/Y

ProPetro Holding Corp. PUMP reported a first-quarter 2025 adjusted profit per share of 9 cents, which beat the Zacks Consensus Estimate of 6 cents, backed by a 6.8% year-over-year decline in costs and expenses. However, the bottom line underperformed the year-ago profit of 18 cents.

Revenues of $359 million beat the consensus mark of $341 million. This improvement can be attributed to better-than-expected service revenues in the Wireline and Hydraulic Fracturing segments. The revenues in the Wireline segment reached $53.4 million, surpassing the consensus estimate by 15.3%. The revenues in the Hydraulic Fracturing segment reached $269.4 million, surpassing the consensus estimate by 13.5%. However, the top line decreased 11.6% from the year-ago quarter’s level of $406 million. This was due to a year-over-year decline in service revenues from Hydraulic Fracturing and Wireline operations.

ProPetro Holding Corp. Price, Consensus and EPS Surprise

ProPetro Holding Corp. price-consensus-eps-surprise-chart | ProPetro Holding Corp. Quote

Adjusted EBITDA amounted to $72.7 million, up 38% from $52.7 million reported in the previous quarter. The figure also topped our model estimate of $63.4 million.

For the quarter under review, Midland, TX-based oil and gas equipment and services company posted a net income of $10 million, a sequential rise from the previous quarter’s reported net loss of $17 million.

(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

PUMP’s Share Repurchase Program

On April 24, 2024, the company announced a $100 million increase in its share repurchase program, bringing the total authorization to $200 million and extending the program through May 2025. Since the initiation of the program, PUMP has repurchased 13 million shares, accounting for approximately 11% of its outstanding common stock. During the first quarter of 2025, no shares were repurchased as the company focused on launching and scaling its PROPWR business. However, before the share repurchase program expires next month, it plans to seek the approval of the board of directors to extend the same.

PROPWR Updates

In addition to the previous orders of 140 megawatts of mobile natural gas-fueled power equipment, ProPetro has added another order of 80 megawatts of natural gas reciprocating generators, which will be funded from its cash flow. The delivery of the full 220 megawatts of PROPWR equipment is expected by mid-2026. Demand remains strong, and the company has secured letters of intent for around 75 megawatts of long-term PROPWR service with two Permian Basin operators, which will be converted into final contracts soon.

Roughly 50% of ProPetro’s active hydraulic horsepower is now secured under long-term contracts, including two Tier IV DGB dual-fuel fleets and four FORCE® electric-powered hydraulic fracturing fleets.

PUMP’s Pressure Pumping Segment

ProPetro provides hydraulic fracturing, cementing and acidizing functions through its Pressure Pumping segment. The business contributed 100% to the company's total revenues in the quarter under review.

Service revenues from this unit increased 12% to $359.4 million from the previous quarter’s level. However, the figure was higher than our estimate of $338.6 million.

Costs & Financial Position of PUMP

Total costs and expenses were $350 million for the first quarter, which was down 6.8% from the prior-year quarter’s level. The cost of services (exclusive of depreciation and amortization) was $263.9 million compared with $288.6 million in the prior-year quarter.

On the other hand, general and administrative expenses (inclusive of stock-based compensation) were $27.6 million compared with $28.2 million in the prior-year quarter. Depreciation and amortization were reduced 17% to $48.7 million from the prior-year quarter's level.

The company recorded capital expenditures of $39 million in the first quarter of 2025, primarily for maintenance and a down payment for the initial PROPWRturbine orders. Net cash used in investing activities, as reported on the statement of cash flows for the quarter, totaled $32.8 million.

As of March 31, 2025, PUMP had $63.4 million in cash and cash equivalents and $45 million in borrowings under its ABL Credit Facility.

Total liquidity was $197 million, including $134 million in available credit in March-end.  Long-term debt amounted to $45 million. The total debt-to-total capital was 5.2%.

Net cash provided by operating activities totaled $54.7 million in this quarter, which was down from $74.8 million in the year-ago quarter. Free cash flow improved to approximately $21.9 million compared with $13.4 million in the previous quarter.

PUMP’s 2025 Guidance

The company expects its full-year 2025 capital spending to be between $295 million and $345 million. Of this amount, $125 million to $175 million will go to the completions business, a reduction from the original guidance, driven by successful cost optimization efforts. During 2025 and 2026, the company plans to allocate $170 million and $60 million, respectively, to support current PROPWRequipment orders.

In the first quarter, there were 14 to 15 active hydraulic fracturing fleets. However, due to the recent drop in oil prices — driven by tariffs and increased production from OPEC+ — and the company's strategic approach to asset deployment, it expects to operate around 13 to 14 fleets in the second quarter of 2025.

ProPetro’s Zacks Rank

PUMP currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Important Earnings at a Glance

While we have discussed PUMP’s first-quarter results in detail, let us take a look at three other key reports in this space.

Oil and gas equipment and services provider TechnipFMC plc FTI reported first-quarter 2025 adjusted earnings of 33 cents per share, which missed the Zacks Consensus Estimate of 36 cents, primarily due to a 4.8% year-over-year increase in costs and expenses. However, the bottom line increased from the year-ago quarter’s reported profit of 22 cents, driven by improved performance in the Subsea segment.

The company’s revenues of $2.2 billion missed the Zacks Consensus Estimate by 1.1%. However, the top line increased from the year-ago quarter’s reported figure of $2 billion.

As of March 31, FTI had cash and cash equivalents worth $1.2 billion and long-term debt of $410.8 million, with a debt-to-capitalization of 11.8%.

Another oil and gas equipment and services provider, Core Laboratories Inc. CLB, reported first-quarter 2025 adjusted earnings of 8 cents per share, which missed the Zacks Consensus Estimate of 15 cents. The bottom line also underperformed the year-ago quarter’s reported figure of 13 cents. This can be attributed to the underperformance of the Reservoir Description segment.

The company reported operating revenues of $124 million, in line with the Zacks Consensus Estimate. However, the top line decreased 4.6% from the year-ago quarter’s $130 million. This can be attributed to the recent imposition of sanctions and operational inefficiencies.

As of March 31, 2025, the company had cash and cash equivalents of $22.1 million and long-term debt of $124.4 million. CLB’s debt-to-capitalization was 32.4%.

Houston, TX-based oil and gas equipment and services provider Baker Hughes BKR reported first-quarter 2025 adjusted earnings of 51 cents per share, which beat the Zacks Consensus Estimate of 47 cents. The bottom line also improved from the year-ago level of 43 cents.

As of March 31, 2025, Baker had cash and cash equivalents of $3,277 million. Baker had a long-term debt of $5,969 million at the end of the reported quarter, with a debt-to-capitalization of 25.9%.

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This article originally published on Zacks Investment Research (zacks.com).

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